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2022 (11) TMI 877 - AT - Income TaxDeduction u/s 80P - interest income received from parking its surplus funds with Co-operative Bank - As per AO and CIT since SVC Co-operative Bank Ltd is no more a co-operative society as it has more than 105 branches in 7 states operating on the basis of licence issued by Reserve Bank of India and the interest income earned by assessee is clearly in the nature of “Income from other sources” it does not qualify for deduction under section 80P(2)(d) - HELD THAT:- We have perused the findings returned by co-ordinate bench of Tribunal in case of Petit Towers Co-operative Housing Society Ltd [2021 (9) TMI 232 - ITAT MUMBAI], which is on identical issue, co-ordinate bench of Tribunal by distinguishing the case laws rendered by Hon’ble Supreme Court in the case of Totagar’s Co-operative Sale Society Ltd vs ITO [2010 (2) TMI 3 - SUPREME COURT] and by following the decision of Pr. Commissioner of Income Tax and Anr. vs. Totagars Cooperative Sale Society [2017 (1) TMI 1100 - KARNATAKA HIGH COURT] and State Bank Of India Vs. CIT [2016 (7) TMI 516 - GUJARAT HIGH COURT] reached the conclusion that interest income earned by co-operative society on its investment held with co-operative bank would be eligible for claim of deduction under section 80P(2)(d) of the Act. Thus interest income earned by assessee society from parking its surplus funds with SVC Co-operative Bank Ltd would be eligible for claim of deduction under section 80P(2)(d) of the Act as the co-operative bank also falls in the category of society registered under the Co-operative Society Act, 1912 (20/1952) or under any other law for the time being in force in any state for the registration of co-operative society. Appeal of assessee allowed.
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