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2022 (12) TMI 1085 - AT - Income TaxRevision u/s 263 - deduction u/s 80P(2)(d) on the interest received from the cooperative banks - whether assessee is eligible to claim deduction on interest earned from Co-Operative Banks u/s 80P(2)(d) of the Act ? - HELD THAT:- As in the case of Surat Vankar Sahakari Sangh Ltd. [2016 (7) TMI 1217 - GUJARAT HIGH COURT] held assessee-cooperative society was eligible for deduction under section 80P(2)(d) in respect of gross interest received from co-operative bank without adjusting interest paid to said bank. In the case of Surendranagar District Co-op. Milk Producers Union Ltd. [2019 (9) TMI 978 - ITAT RAJKOT] held that assessee-co-operative society could not claim benefit of section 80P(2)(d) in respect of interest earned by it from deposits made with nationalised/private banks, however, said benefit was available in respect of interest earned on deposits made with co-operative bank. In the case of Totagars Cooperative Sale Society [2017 (1) TMI 1100 - KARNATAKA HIGH COURT] held that the interest income earned by a cooperative society on its investments held with a co-operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. In view of the aforesaid decisions of Honourable High Court of Gujarat and other cases cited above, Principal CIT erred in holding that the order passed by AO is erroneous and prejudicial to the interest of the Revenue on account of allowability of interest earned by the assessee on interest earned by the assessee from cooperative banks, coupled with the fact that Ld. AO had made due enquiries on this issue during the course of assessment proceedings.Appeal of the assessee is allowed.
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