TaxTMI 
TaxTMI 
2018 (3) TMI 309
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....iness of Co-operative Society. The return of income has e-filed on 12/11/2012 declaring total income of Rs. 34,649/-. The AO has assessed the total income after disallowance of claim u/s.80P(2)(d) of Rs. 42,57,348/-. 5. By the impugned order, CIT(A) allowed assessee's claim of deduction u/s.80P after observing as under:- 5.7 The appellant is a Co-operative Credit society. It is not carrying out any banking activity so as to say that it is a Co-operative Bank. It is not registered with the Reserve Bank of India and it does not fulfill all the conditions prescribed under section 5(ccv) of the Banking Regulations Act 1949. As per sections 2(19) of the income-tax act 1961, a Co-operative society means a co-operative society registered under ....
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....r co-op society if such income is included in the gross total income of the such co-op society. In view of these facts and circumstances we are of the considered view that the assessee is entitled to the deductions of Rs. 14,88,107 in respect of interest received/ derived by it on deposit "with co-op banks and therefore the appeal of the assessee is allowed by reversing the order of the CIT(A). The AO is directed accordingly." 5.9 In the case of the advocates mutually aided Co-operative Society Vs ACIT(2015), in ITA No. 546,547 & 1331/Hyd/2103, it was held by the Hon'ble ITAT, Hyderabad Bench that provisions of sections 80P(4) does not apply as the assessee society is not in the business of Banking and that sections 80P(2)(d) is appl....
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.... of the such Co-op society. In view these facts and circumstances we are of the considered view that the assessee is entitled to the deduction of Rs. 14,88,107/- in respect of interest received/derived by it on deposits with co-op, banks and therefore the appeal of the assessee is allowed by reversing the order of the CIT (A). The AO is directed accordingly," 5.11 Further Hon'ble ITAT Mumbai has decided the issue in the case of Lands' End Co-operative Housing Society Ltd vs. I.T.O. I.T.A. No. 3566/Mum/2014 (ITAT) dated 15-01-20l6.The operative part of the above decision reads as under:- " the provisions of section 80(P)(2)(d) of the Act provides for deduction in respect of income of a coop society by way of interest or dividen....
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....falls within the exemption granted by Section 80P(2)(d) of the Act. The assessee was also eligible under the provisions of Section 80P(2)a(i) as the funds placed by assessee in the form of fixed deposits can be said to be kept for the purpose of business of the assessee as the assessee had availed credit facilities also against such fixed deposits which were again used for the purpose of business of assessee. Moreover, under similar circumstances, Chandigarh Bench in I.T.A. No. 996/2009 as noted by Ld. CIT(A) has decided in favour of assessee. The dividend income is exempt for all persons including assessee. The interest income from bank amounting to Rs. 18,190/- is though not exempt u/s 80(p)(2)(d) but is exempt u/s 80P(2)(i) of the Act. T....