Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 948 - AT - Income TaxDeduction u/s 80P(2)(d) - net interest income from Co. Op. banks - HELD THAT:- As assessee is earning interest income from Mehsana District Co-op. Bank Ltd., which is a registered co-operative bank under Gujarat Co-operative Societies Act and is a member of the Co-operative Society; and the interest earned thereon comes under the purview of Section 80P(2)(d) of the Act as held in the case of Sabarkantha Dist. Co-op. Milk Producers Union Ltd. (2014 (6) TMI 977 - GUJARAT HIGH COURT). Therefore, the assessee is eligible for deduction u/s 80P(2)(d) of the Act. As relates to the decisions of Citizen Co-operative Society Ltd (2017 (8) TMI 536 - SUPREME COURT), Bangalore Club (2013 (1) TMI 343 - SUPREME COURT) and the decision of Totagars Co-operative Sale Society, [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] will not be applicable in the light of decision of Hon’ble Apex Court in the case of The Mavilayi Service Co-op. Bank Ltd. (2021 (1) TMI 488 - SUPREME COURT) which clearly held that the deduction u/s 80P will exclude only co-operative banks, which are co-operative societies who must possess a licence from the RBI to do banking business. In fact, the interpretation taken by the Revenue appears to be on the wrong footing, and the co-operative banks which are the members of co-operative societies and the deposits made by the co-operative societies in such cooperative banks are eligible for deduction u/s 80P(2)(d) of the Act. Decided in favour of assessee.
|