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2021 (11) TMI 1198 - AT - Income TaxBenefit of deduction u/s 80P(2)(d) - interest income received by a cooperative society from other cooperative societies - HELD THAT - On perusal of provisions of section 80P(2)(d) it is clear that the income derived by a cooperative society from its investment held with other cooperative societies shall be exempt from the total income of a cooperative society. Therefore what is relevant for claiming of deduction u/s 80P(2)(d) is that interest income should have been derived from the investment made by the assessee cooperative society with any other cooperative society. In the present case the reasoning given by the lower authorities for denial of exemption u/s 80P(2)(d) is that interest was received from cooperative bank has no legs to stand as a cooperative bank is also a cooperative society. This issue was considered in the case of CIT vs. Totagars Cooperative Sale Society 2017 (7) TMI 1049 - KARNATAKA HIGH COURT wherein referring to case of Totgars Co-operative Sales Society Ltd. 2010 (2) TMI 3 - SUPREME COURT held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. From material on record it is not clear that whether the entire interest income was received from cooperative bank or other bank? - In the circumstances we remit the matter to the file of the AO for the purpose of verifying whether entire interest income was received from other cooperative bank if so allow the same or otherwise restricted the exemption to the extent of income received from other cooperative banks. Grounds raised by the assessee are partly allowed for statistical purposes.
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