TMI Blog2019 (4) TMI 1932X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 80P(2)(d) and held that cooperative society includes cooperative bank for the purpose of deduction u/s.80P(2)(d) of the Act. Therefore, it has been held that interest received by the cooperative society from the cooperative bank is eligible for deduction u/s. 80P(2)(d) of the Act. While holding so, the Hon'ble High Court also considered the decision of the Hon'ble Supreme Court in the case of the very same assessee reported in The Totgar Cooperative Sales Society Limited v. ITO [ 2010 (2) TMI 3 - SUPREME COURT] Assessee is a cooperative society engaged in the business of providing credit facilities to its members is eligible for deduction u/s.80P(2)(d) of the Act in respect of interest income earned by the assessee from ei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing credit facilities to its members. In other words, the Ld.CIT(A) allowed deduction u/s.80P(2)(a)(i) of the Act in respect of the income earned by the assessee in providing credit facilities to its members as cooperative society and not a cooperative bank. No appeal by the Revenue challenging this finding of the Ld.CIT(A). He quantified the deduction to be allowed at ₹.8,07,963/- and ₹.10,34,063/- for the A.Ys. 2013-14 and 2014-15 respectively. However, the Ld.CIT(A) held that the assessee is not entitled for deduction u/s.80P(2)(d) of ₹.15,38,417/- and ₹.17,72,197/- for A.Ys. 2013-14 and 2014-15 respectively on the interest income earned by the assessee from cooperative banks and in coming to such conclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... butable to the business of providing credit facilities to the members or marketing of agricultural produce of the members is assessable as other income and not as business profits . Therefore, this decision has no application to the facts of the assessee case. 6. In the case before me, the issue is, whether the assessee is entitled for deduction u/s. 80P(2)(d) of the Act on the interest earned from investments in cooperative banks/cooperative societies. 7. Provisions of section 80P(2)(d) reads as under: - (d) in respect of any income by way of interest or dividends derived by the cooperative society from its investments with any other cooperative society, the whole of such income. 8. As could be seen from the above, the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble High Court held as under: - 5. The learned counsel for the Revenue has pleaded that two substantial questions of law are raised in the present appeal, namely, 1. Whether the learned Tribunal was justified in deleting the additions made by the Assessing Authority being the disallowed deduction claimed u/S 80P(2)(d) of the Income Tax Act and in the light of the decision of the Supreme Court with regard to the same exact assessee as the present one, namely, The Totgars Co-operative Sale Society Ltd., Vs. Income Tax Officer in Civil Appeal Nos.1622 to 1629/2010 decided by the Apex Court on 08.02.2010 or not? 2. Whether, in the facts and circumstances of the case, the Tribunal is justified in not following the decision rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identifies a particular species of the genus Cooperative Societies. Co-Operative Society can be of different nature, and can be involved in different activities; the Co-operative Society Bank is merely a variety of the Co-operative Societies. Thus the Cooperative Bank which is a species of the genus would necessarily be covered by the word Co-operative Society . 9. Furthermore, even according to Section 56(i)(ccv) of the Banking Regulations Act, 1949, defines a primary Co-Operative Society bank as the meaning of CoOperative Society. Therefore, a Co-operative Society Bank would be included in the words Co-operative Society . 10. Admittedly, the interest which the assessee respondent had earned was from a Co-operative Society Bank. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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