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2024 (4) TMI 449 - AT - Income TaxRevision u/s 263 - Deduction u/s 80P on interest received from Cooperative Bank - HELD THAT:- As decided in Katlary Kariyana Merchant Sahkart Sarafi Mandali Ltd [2022 (1) TMI 1309 - GUJARAT HIGH COURT] wherein held as following the decision of Totagar's Co-operative Sale Society ltd. [2010 (2) TMI 3 - SUPREME COURT] it was held that interest earned from investments made in any bank, not being cooperative society, is not deductible under section 80P(2) (d) of the act. This Court further finds that by virtue of amendment in section 194A(3)(v) of the Income tax act, it has also excluded the cooperative banks from the definition of "co-operative society" by the Finance act, 2015. The High Court of Karnataka has taken note of this amendment in the case of Totagars Co-op/sale society [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] thereby holding that the effect of the aforesaid amendment explicitly makes clear intention of legislation that co-operative banks are not specie of genus co-operative society, which would entitled to exemption or deduction under the special provisions of Chapter VI-A in the form of section 80P of the Act. Thus the allowance of deduction of the income derived by way of interest from the investment in the form of FDR's with other banks was incorrect. No infirmity in the Revision order passed by the Ld. PCIT which does not warrant any interference. Thus the grounds raised by the assessee is devoid of merits liable to be rejected.
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