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2021 (3) TMI 812 - AT - Income TaxDenying the deduction under section 80P to the society in respect of interest paid - HELD THAT:- As provisions of section 80P(2)(4), a co-operative bank as such does not mean a cooperative society. The Ld. Counsel for the assessee in this respect has submitted that the intention of the legislature is to deny deduction to the cooperative bank and not to the cooperative society. We are not convinced with the above argument of the assessee. As per the provisions of section 80P(2)(d), what has been allowed is interest or dividend derived by the co-operative society with investment in any another co-operative society. The meaning of co-operative society cannot be taken differently for the investor and for the Institution (investee). The provisions of section 80P(4) specifically states that the provisions of this section will not apply to any co-operative bank. The plain meaning of which is that the same interpretation is to be given in case of an investor co-operative society and to the bank in which the investment is made. The Co-operative Bank cannot be given a different interpretation as an investee Bank. Two different meanings cannot be ascribed to the same word in the same provision. We hold that the assessee is not entitled to any deduction on interest income as per the provisions of section 80P(2)(d) of the Act. However, so far as the claim of the assessee that the assessee is entitled to deduction us 80P(2)(a) is concerned, the said issue has not been looked into by the Ld. CIT(A) despite a ground in this respect taken by the assessee before the Ld. CIT(A). Matter is restored to the file of the Ld. CIT(A) for the limited purpose of adjudicating on the plea of the assessee regarding its eligibility of deduction of interest income u/s. 80P(2)(a) - CIT(A) will give proper opportunity to the assessee to present its case and address on this issue by way of a speaking order. - Appeal of the assessee is treated as allowed for statistical purposes.
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