TMI Blog2016 (9) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... t Society from the investments made in Salem District Central Co-operative Bank, which is also a Co-operative Society is entitled for deduction under Section 80 P (2) (a) (i) of the Income Tax Act. Decision relied on by the assessee and considered by the Tribunal squarely applies to the facts on hand - Tax Case Appeal No. 5 of 2015 - - - Dated:- 10-8-2016 - S. Manikumar And D. Krishnakumar, JJ. For the Appellant : Mr. J. Narayanasamy For the Respondent : No appearance JUDGMENT ( Judgment of the Court was made by S. Manikumar, J ) Challenge in this Tax Appeal, is to an order passed by the Income Tax Appellate Tribunal in I.T.A.No.732/Mds/2014, dated 30/6/2014, for the assessment year 2010-2011. 2. In the instant T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n answered against the appellant in T.C.A.Nos.3 and 4 of 2015, dated 9/8/2016, and that therefore, we are not inclined to advert to the same. 4. Though the assessee had contended that the income by way of interest and dividend covered by the assessee/Society from the investment made in Salem District Central Co-operative Bank, which is also a Co-operative Society and therefore, the assessee is entitled for reduction under Section 80 P (2) (d) of the Income Tax Act, the assessing Officer has disallowed the same. CIT (Appeals) has confirmed before the Tribunal. 5. Placing reliance on the decision of Himachal Pradesh High Court in COMMISSIONER OF INCOME TAX Vs. KANGRA CO-OPERATIVE BANK LTD., reported in {(2009) 309 ITR 106 (HP)}, before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee is an Agricultural Producers Co-operative Marketing Society Ltd., registered under Tamil Nadu Co-operative Societies Act and established for the benefit of the Agricultural producers and the interest or dividend earned by the assessee will be beneficial to the members alone. Therefore, keeping in view of the decision, in the case of CIT Vs. Kangra Co-operative Bank Ltd., (supra), we hold that the assessee is eligible for benefit under Section 80 P (2) (d) of the Act and also this being a beneficial section to the co-operative Societies. 7. Let us consider the decision in KANGRA CO-OPERATIVE BANK LTD'S case referred to by the tribunal. The question of law framed therein is as follows:- Whether on the facts and ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or deposited in a certain manner. Applying the ration of the judgment in Nawanshahar Central Co-operative Bank Ltd's case [2007] 289 ITR 6, it is apparent that any interest on such investments is required to be deducted under Section 80 P (2) (a) (i) of the Act. At para 12 of the judgment, further reiterated that .... Furthermore, the investments have been made in the H.P.State Co-operative Bank which is also a co-operative Society and, therefore, even under Section 80 P (2) (d) of the Act, interest income from investments made in any co-operative Society would also be entitled for deduction. 9. Though Mr.J.Narayanasamy, learned Senior Standing Counsel for Income Tax Department submitted that the Tribunal was not right in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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