TMI Blog2017 (3) TMI 1728X X X X Extracts X X X X X X X X Extracts X X X X ..... erative society so as to justify the claim that such interest earnings fall within the scope of section 80P(2)(d) of the Act. Further, the reliance placed by the CIT(A) on the decision of the SMC Bench of Mumbai Tribunal in the case of Shri Saidatta Cooperative Credit Society Ltd. [2016 (1) TMI 1262 - ITAT MUMBAI] is also of no avail, inasmuch as, the Bench merely set-aside the matter to the file of the Assessing Officer for examination afresh, whereas in the case of Lands End Co-operative Housing Society Ltd(supra), the claim of exemption under section 80P(2)(d) of the Act with respect to the interest earned from a Co-operative bank has been upheld. Therefore, in view of the said precedent, the claim of the assessee deserves to be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appreciating that the Hon. ITAT, A- Bench, Mumbai in the case of Lands End Cooperative Housing Society Ltd. In ITA No.3566Mum/2014, wherein on an identical issue i.e. claim of deduction u/s.SOP(2)(d) of the Act in respect of interest on fixed deposit with cooperative banks was involved, has held that the assesse is entitled to the deduction for interest derived by it on deposits with cooperative banks. 2.1 Briefly put, the relevant facts are that the appellant is a Co-operative housing society, which had, inter-alia, earned an interest income of ₹ 27,41,747/-,on which deduction under section80P of the Act was denied. The claim of the assessee was that the said interest is earned on deposits with a Co-operative bank and, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety Ltd. Vs.ITO in ITA No. 2379/Mum/2015dated 15/1/2016(supra)is to the contrary and, therefore, the CIT(A) was justified in denying the claim for exemption under section 80P(2)(d) of the Act. 5. We have carefully considered the rival submissions. The facts lie in a narrow compass, inasmuch as, the appellant is a Co-operative society, whose income , inter-alia, included interest earned on deposits with another Cooperative bank. Accordingly, such income was claimed as exempt under section 80P(2)(d) of the Act. The claim has been denied primarily on account of the fact that section 80P(2)(d) of the Act relates to the income earned from a Co-operative society. In this context, the decision of the Mumbai Tribunal in the case of Lands End ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of better proper understanding of these two provisions the relevant extract of the section are reproduced below: 80P: Deduction in respect of income of co-operative Societies. 1. Where, in the case of an assesssee being a co-operative society, the gross total income, includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. 2. The sums referred to in sub-section (1) shall be the following, namely:- (a)In the case of a co-operative society engaged in- ( i) Carrying on the business of banking or providing credit facilities to its members. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the decision of the Hon ble Supreme court. The Honble Supreme Court in the case of Totagar s Co-operative Sale Society Ltd.(Supra) held that a society has surplus funds which are invested in short term deposits where the society is engaged in the business of banking or providing credit facilities to its members in that case the said income from short term deposits shall be treated and assessed as income from other sources and deduction u/s 80(P)(2)(a)(i) would not be available meaning thereby that deduction u/s 80(P)(2)(a)(i) is available only in respect of income which is assessable as business income and not as income from other sources. Whereas in distinction to this , the provisions of section 80(P)(2)(d) of the Act provides for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the scope of section 80P(2)(d) of the Act. Further, the reliance placed by the CIT(A) on the decision of the SMC Bench of Mumbai Tribunal in the case of Shri Saidatta Cooperative Credit Society Ltd.(supra) is also of no avail, inasmuch as, the Bench merely set-aside the matter to the file of the Assessing Officer for examination afresh, whereas in the case of Lands End Co-operative Housing Society Ltd(supra), the claim of exemption under section 80P(2)(d) of the Act with respect to the interest earned from a Co-operative bank has been upheld. Therefore, in view of the said precedent, the claim of the assessee deserves to be allowed. We hold so. 6. In view of the above, the order of the CIT(A) is set-aside and the Assessing Officer is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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