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2023 (2) TMI 458 - ITAT AHMEDABADReopening of assessment u/s 147 - Deduction u/s 80P(2)(a)(i) - interest on FD with the SK Dist Co. Op. Bank and other Nationalized Banks - HELD THAT:- Hon’ble Supreme Court in the case of Mavilayi Service Co-operative Bank Limited [2021 (1) TMI 488 - SUPREME COURT] has considered the investments and the income derived from the interest income in respect of Co-operative Banks as well as other Banks. As regards to reopening, the Assessing Officer, after taking proper approval has reopened the issue because the Assessing Officer has not taken the cognisance of the decisions of the Hon’ble Apex Court. Therefore, the reopening is justifiable and the contentions of the assessee is rejected. As regards the decision of Mavilayi Service Co-operative Bank Limited (supra), the Hon’ble Apex Court has clearly mentioned that deduction that is given without any reference to any restriction or limitation cannot be restricted or limited by implication, as is sought to be done by the Revenue in the present case by adding word “agriculture” into Section 80P(2)(a)(i) of the Act when it is not there. In the present case, the assessee society has invested business income with S.K. District Central Co-operative Bank Limited which is member of Co-operative Society and such investments and interest earned thereon is coming under the purview of deduction under Section 80P of the Act in consonance with the decision of Hon’ble Apex Court in the case of Totgar’s Co-operative Sales Society Limited [2010 (2) TMI 3 - SUPREME COURT] - Thus, the Assessing Officer as well as the CIT(A) has not taken cognisance of the decisions of Hon’ble Apex Court in respect of Totgar’s Co-operative Sales Society Limited as well as Mavilayi Service Co-operative Bank Limited. Assesse appeal allowed.
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