TMI Blog2018 (1) TMI 1593X X X X Extracts X X X X X X X X Extracts X X X X ..... as earlier Bench of the Hon ble Karnataka High Court in the case of Principal Commissioner of Income-tax Anrs. Vs. Totagars Co-operative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] and held that Co-operative Society includes a Co-operative Bank and interest earned from deposits with a Co-operative Bank is also entitled to deduction u/s 80P(2)(d) of the I.T.Act. The assessee had specifically raised the contention that the assessee is only a Co-operative Society and not a Cooperative Bank. In the interest of justice and equity, we are of the view that the matter needs to be examined by the A.O. afresh in the light of the certificate issued by the Registrar of Co-operative Societies regarding the status of Trivandrum Distric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction u/s 80P(2)(a)(i) of the I.T.Act was that the assessee was doing the business of banking and in view of insertion of section 80P(4) of the I.T.Act, the assessee was not entitled to the benefit of section 80P(2)(a)(i) of the I.T.Act. The specific claim of the assessee that it is entitled to deduction u/s 80P(2)(d) of the I.T.Act with regard to income under the head `other source amounting to ₹ 2,20,84,676, the Assessing Officer held that interest was received from investments with a Co-operative Bank, viz., Trivandrum District Co-operative Bank Limited and not a Cooperative Society as contemplated u/s 80P(2)(d) of the I.T.Act. 3. Aggrieved by the order of assessment, the assessee preferred an appeal to the first appellate aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The CIT(A) ought to have accepted the law laid down as per the Judgment in the case of M/s Totgars Co-operative Sale Society Ltd., Vs. The Income Tax Officer (reported in 322 ITR 283) and the judgment of the Hon'ble High Court of Karnataka, reported in 231 Taxman 794 in the case of M/s Totgars Co-op. Sale Society Ltd., Vs. The Income Tax Officer and allowed the claim for deduction u/s 80P(2)(d). 5. It is submitted that in view of the statutory provision contained in Sec.80P(2)(d), the claim should have been allowed. The contrary view taken by the Assessing Officer and the CIT(A), is illegal and unsustainable. 6. The CIT(A) also should have taken into account that the claim for the cost of funds and overhead expenses, administrativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no dispute that income of ₹ 2,20,84,676 is to be assessed as `income from other sources . It was submitted that though the income is to be assessed as `income from other sources , the same is entitled to deduction u/s 80P(2)(d) of the I.T.Act. The learned Counsel has filed the brief written submission. The relevant portion of the same reads as follow:- In this connection, it is respectfully submitted that Trivandrum District co-operative Bank Limited is a Co-operative Society registered under the Travancore- Cochin Cooperative Societies Act, 1951. A true copy of the certificate of registration obtained from the Trivandrum District Co-operative Bank Ltd. dated 1.8.1958 is submitted herewith for your kind reference. The Circular NO. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not a Co-operative Bank. The assessee had submitted a copy of certificate of registration obtained from Trivandrum District Co-operative Bank Limited (certificate dated 01.08.1958). From the perusal of the said certificate, it is not very discernible whether Trivandrum District Co-operative Bank Limited is a Co-operative Society or a Co-operative Bank. Section 80P(2)(d) of the I.T.Act states as follows:- In respect of any income by way of interest or dividends derived by the Co-operative Society from its investments with any other Co-operative Society, the whole of such income. 7.1 The above provision provides for deduction u/s 80P(2)(d) of the Income-tax Act, intereset or dividends derived by Cooperative Society from its investment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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