2017 (1) TMI 1100 - HC - Income Tax

Entitlement to claim deduction u/s 80P(2)(d) - amount of income was earned by the assessee in the form of interest from deposits in the Co- operative Banks - Held that:- Co-Operative Society can be of different nature, and can be involved in different activities; the Co-operative Society Bank is merely a variety of the Co-operative Societies. Thus the Co - operative Bank which is a species of the genus would necessarily be covered by the word “Co-operative Society”.

Furthermore, even according to Section 56(i)(ccv) of the Banking Regulations Act, 1949, defines a primary Co-Operative Society bank as the meaning of Co- Operative Society. Therefore, a Co-operative Society Bank would be included in the words ‘Co-operative Society’.

Admittedly, the interest which the assessee respondent had earned was from a Co-operative Society Bank. Therefore, according to Sec. 80P(2)(d) of the I.T. Act, the said amount of interest earned from a Co-operative Society Bank would be deductable from the gross income of the Co-operative Society in order to assess its total income. Therefore, the Assessing Officer was not justified in denying the said deduction to the assessee respondent. - Decided in favour of assessee.