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TMI Blog2018 (7) TMI 1465X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 17.02.2016 relevant to Assessment Year (AY) 2013-14. 2. The grounds of appeal raised by the assessee are as under:- "1. The Learned Assessing Officer as well as first appellate authority has erred in disallowing deduction of Rs. 12,94,067/- claimed by the appellant-co-operative society under section 80-P of the Act, The same deserves to be allowed. 2. Without prejudice to the above, the Learned Assessing Officer as well as first appellate authority has erred in not allowing deduction under section 80-P(2)(d) relevant to a sum of Rs. 2,18,529/- earned by the appellant co-operative society by way of interest from co-operative bank. 3. Without prejudice to the above, the Learned Assessing Officer as well as first appellate author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in dispute is squarely covered against the assessee by the decision of the Hon'ble jurisdictional High Court in the case of State Bank of India Vs. CIT, 389 ITR 578, wherein Hon'ble Court held that interest earned from the investment made in any bank is not deductible under section 80P(2)(a)(i) of the Act. In this view of the matter, we dismiss the appeal of the assessee. However, we direct the AO to exclude the amount of net interest income from the deduction claimed u/s 80P(2)(a)(i) of the Act. Thus the AO will allow the expenses incurred by the assessee in the earning of such interest income not eligible for deduction under section 80P(2)(a)(i) of the Act. In this connection we find support & guidance from the order of this Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "7. We have heard the Ld. Representatives of the respective parties and perused the relevant materials available on record. We find that the issue raised by the assessee as to whether the assessee is entitled to the claim u/s.80P(2)(a)(i) & 80P(2)(d) of the Act on the interest and dividend income received from the Banaskantha Dist.Central Co-operative Bank Ltd. is identical to the issue involved in those above appeals decided by the Coordinate Bench of this Tribunal. The Coordinate Bench while deciding the issue has observed as follows: "4. We now advert to the lead issue of Section 80(P)(2) disallowance of Rs. 27,97,019/- in respect of assessee's interest income derived from its deposits with the Banas Co-operative Bank. Both the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CIT(A) in deleting the disallowances of Rs. 1,42,19,5157- under Section 80(P)(2)(d) of the Act is concerned, it is required to be noted that the assessee claimed deduction under Section 80(P)(2)(d) of the Act on the interest earned on the fixed deposit with Cooperative Bank and the Societies and it has been found that as such the income was received from the investment in Cooperative Societies and Cooperative Bank. Considering Section 80(P)(2)(d) of the Act when the only requirement was that the income should be received from investment in Cooperative Societies and the Cooperative Bank which in the present case has been fulfilled, it cannot be said that the learned Tribunal has committed any error in deleting disallowance of Rs. 1,42 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred by the assessee is allowed." Similarly we also note that the assessee is eligible for deduction under section 80P(2)(c) of the Act in as per the decision of the co-ordinate bench of this tribunal in the case of 2426/Ahd/2013 in the case of Dhan Laxmi Co-operative Credit Society Limited wherein it was held as under: "5. We have duly considered rival contentions and gone through the record carefully. We find that in an identical situation the Tribunal has issued following directions in the Asstt.Year 2009-10 for verification of the assessee's claim. "11) Respectfully following the judgment of Hon. Jurisdictional High Court and examining the facts of the case as also in the light of decision of the Co-ordinate Bench discussed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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