TMI Blog2020 (4) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... ety Ltd. [ 2016 (2) TMI 620 - ITAT MUMBAI] - Decided in favour of assessee. - ITA No.1130/M/2019 - - - Dated:- 18-2-2020 - Shri C.N. Prasad, Judicial Member And Shri Rajesh Kumar, Accountant Member For the Assessee : None For the Revenue : Shri R. Bhoopati, Sr. D.R. ORDER PER RAJESH KUMAR, ACCOUNTANT MEMBER: The present appeal has been preferred by the assessee against the order dated 20.12.2018 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2014-15. 2. During the course of hearing, neither assessee nor his authorized representative appeared to attend the hearing nor any application seeking adjournment was filed. Therefore , we are disposing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2/- under section 80P(2)(d) on the ground that Saraswat Co-operative Bank Ltd. is not a cooperative society and therefore the exemption can not be allowed. Ld. CIT(A) held that the co-operative bank is a commercial bank and therefore justified the order of AO. However, in the present case, the issue is settled by the various judicial forums wherein it has been held that cooperative bank is a cooperative society and any interest income accruing to the cooperative society is eligible for deduction under section 80P(2)(d). The case of the assessee is squarely covered by the decision of the coordinate bench in the case of M/s. Lands End Coop. Housing Society Ltd. Vs I.T.O. ITA No.3566/Mum/2014 Assessment Year 2009-10 order dated 15.1.2016. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The whole of the amount of profits and gains of business attributable to any one or more of much attributes. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety 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 deduction in respect of income of a coop society by way of interest or dividend from its investments with other coop so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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