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TMI Blog2016 (9) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961. 3. Brief facts of the case are that the assessee filed its return of income at NIL after claiming deduction under sec. 80P of the Act. It was claimed that the society is entitled to deduction under sec. 80P as it was a Cooperative Society carrying on the business of banking or providing credit facilities to its members. However, the claim of the assessee for deduction under sec. 80P was rejected by the Assessing Officer in the order passed under sec. 143(3) of the Act on the ground that the assessee was a cooperative bank, and hence, not entitled to claim deduction by virtue of sec. 80P(4). 4. On appeal, Commissioner of Income Tax (Appeals) allowed the claim of the assessee by observing as under:- "I have gone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cieties Rs. 16,596/- Rs.2,47,307/- Therefore whether this interest and dividend income earned is attributable to the business of providing credit facilities to its members is the question that requires to be decided or whether the interest and dividend earned on deposits kept with other banks is deductible uls.80P(2)(d). Section 80P(2)(d) states that: "Interest or dividend in respect of any income, by way of deposit with any co-operative society from its investments with any other co-operative society, the whole of such income is eligible for deduction". As per Section 2(19) of the Act, a co-operative society means a co-operative society registered under the Co-operative Societies Act, 1912, or under any law for the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uepem Urban Cooperative Credit Society Ltd. Vs. ACIT in Tax Appeals No. 22-24/2015 dated 17/04/2015, as also the decision of the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. in ITA No. 307/2014, dated 28/10/2014. No contrary decision could be cited by the Departmental Representative. We, therefore, do not find any good and justifiable reason to interfere with the order of the Commissioner of Income Tax (Appeals), which is hereby confirmed and this ground of appeal of the Revenue is dismissed.
6. In the result, appeal filed by the Revenue stands dismissed.
Order Pronounced in the Court at the close of the hearing on Wednesday, the 21th day of September, 2016 at Goa. X X X X Extracts X X X X X X X X Extracts X X X X
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