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2023 (2) TMI 57 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - assessee received interest from Sardar Sarovar Narmada Nigam Limited (SSNL Ltd.) - HELD THAT:- Assessee received interest from Sardar Sarovaor Narmada Nigam Limited which is not co-operative society. The Interest earned on investment in SSNL Limited deposits though claimed as from the operational funds of the assessee society, the same is from surplus funds of the assessee society. The decisions cited by the Ld. AR in respect of Hon’ble Apex Court in the case of Mavilayi Service Co-operative Bank Limited and others [2021 (1) TMI 488 - SUPREME COURT]has categorically mentioned in paragraph no.35 that interest or dividend income derived from Co-operative Society from investments with other Co-operative Society are entitled to deduct the whole of such income, but in earlier paragraph i.e. paragraph no.33 it has clearly stated/held that facilities given to non-members cannot be said to be attributable to the activity of providing credit facilities to its members, such amount cannot be deducted. Thus, in the entirety of the decision of the Hon’ble Apex Court it has categorically differentiated the investments done in Co-operative Societies and non-co-operative Societies/non-members. In the present case, the SSNL Limited are not Co-operative Society or member as well as S.K. District Bank. Thus, the CIT(A) was right in confirming the disallowance. Appeal of the assessee is dismissed.
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