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2023 (4) TMI 796 - AT - Income TaxDeduction u/s.80P(2)(d) - interest received from Co-operative banks - assessee is a co-operative housing society - HELD THAT:- For cooperative banks or cooperative societies which are carrying on banking business but not registered with RBI, they would be entitled for deduction u/s.80P(2)(a)(i) of the Act and would not be hit by the provisions of Section 80P(4) of the Act. The Hon’ble Supreme Court Mavilayi Service Co-operative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT] had taken cognizance of the CBDT Circular dated 28/12/2006 containing the explanatory notes on provisions contained in the Finance Act 2006 and the CBDT clarification dated 09/05/2008 while laying down the aforesaid proposition. The fact of co-operative societies investing in co-operative banks were never disturbed by this decision. Hence, we hold that the reliance placed by the ld. DR on the aforesaid decision of the Hon’ble Supreme Court would not advance the case of the Revenue as they are factually distinguishable. Accordingly, by placing reliance on the co-ordinate Bench decision of this Tribunal in the case of Tulsiani Chambers Premises Co-operative Society Ltd [2022 (5) TMI 548 - ITAT MUMBAI] which are reproduced hereinabove, we hold that assessee society would be entitled for deduction u/s.80P(2)(d) of the Act in respect of interest received from co-operative banks. Accordingly, the ground raised by the assessee on this issue is allowed.
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