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TMI Blog2020 (12) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... P(2)(d) amounting to Rs. 12, 22,220 is not allowable to the appellant though the appellant is Co-operative Housing Society and it has received the interest from Co-operative Bank. (Tax effect Rs. 377,666/-) 2. On facts and circumstances of the case and in law, the learned CIT(A) erred in confirming that the deduction u/s.80P(2)(d) amounting to Rs. 12,22,220 is not allowable to the appellant though the judicial pronouncement of the ITAT Mumbai are in favour of the appellant. (Tax effect Rs. 377,666/-). 3. On facts and circumstances of the case and in law, the learned CIT(A) erred in not considering the various judgement in respect of S.80P(2)(d) though the same are accepted by the Department and wrongly confirm the additions by disallowi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e should be eligible for deduction under section 80 P(2)(d) on interest income on from co-operative bank. In this regard the list of following case laws has been given :- * ITO Vs Oberoi Spring Co-operating Housing Society Ltd. (ITA No. 786/M/2019 dated 28.8.2020) * M/s Solitaire CHS Ltd. Vs. PCIT (ITA No.3155/Mum/2019 dated 29.11.2019) * Jiwan Satya Co-op Housing Society Ltd. Vs. ITO (ITA Nos. 4248 & 4249/MUM/2018 dated 26.7.2019) * Ekta Milan Co-op. Housing Society Limited Vs. CIT (ITA No.3867/Mum/2018 dated 30.4.2019) * Kaliandas Udyog Bhavan Premises Co-op Society Ltd. V ITO (ITANo. 547/Mum/2017 dated 25.4.2018) * ITO V.Shree Keshorai Patan Sahakari Sugar Mill (ITA Nos. 418&419/JP/2017 dated 31.1.2018) * Pr. CIT Vs. Totaga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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)............................................................................................ (b)............................................................................................ (c)............................................................................................ (d) in respect of any income by way of interest or dividends derived by the cooperative society from its investments with any other co-operative society, the whole of such income." On a perusal of Sec. 80P(2)(d), it can safely be gathered that interest income derived by a co-operative soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , or under any other law for the time being in force in any state for the registration of co-operative societies;" As observed hereinabove, though a co-operative bank pursuant to the insertion of sub-section (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the IT Act, however, as a co-operative bank continues to be a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any state for the registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for deduction under Sec.80P(2)(d). In fact, we find that the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n‟ble Supreme Court in the case of Totgars Co-operative Sale Society Ltd. vs. ITO (2010) 322 ITR 283(S.C) being distinguishable on facts, had thus wrongly been relied upon by them. In fact, the adjudication by the Hon'ble Apex Court in the aforesaid case was in context of Sec. 80P(2)(a)(i) and not on the entitlement of a co-operative society towards deduction under Sec. 80P(2)(d) on its interest income on the investments parked with a co-operative bank. We thus respectfully following the view taken by the Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon'ble High Court of Gujarat in the case of State Bank of India Vs. CIT (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of honourable Karnataka High Court itself in favour of the assessee and there is another decision of honourable Gujarat High Court in favour of assessee on the same issue. In this view of the matter in our considered opinion learned CIT(A) has also committed violation of the judicial discipline by refusing to follow the precedence cited before him on not very cogent ground. 11. Be as it may we find that the issue involved is covered in favour of the assessee by several decisions of ITAT Mumbai as above. Moreover it is also supported by the decisions of honourable Karnataka High Court in the case of Totagars Cooperative Sale Society (392 ITR 74) and Honourable Gujarat High Court as referred in ITAT decision as above. 12. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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