TMI Blog2018 (4) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... venue : Shri Saurabh Kumar Rai-DR ORDER Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 24/10/2016 of the Ld. First Appellate Authority, Mumbai, in confirming the disallowance of ₹ 61,75,706/- made u/s 80P(2)(d) of the Income Tax Act, 1961 (hereinafter the Act) in respect of interest earned by the assessee society from cooperative banks. 2. During hearing, at the outset, the ld. counsel for the assessee Shri Deepak Tikekar Shri R.B. Prabhavalkar claimed that the impugned issue is covered by the decision of the Tribunal in the case of Income Tax Officer vs M/s Presidency Cooperative Housing Society Ltd., for Assessment Year 2012-13, order dated 06/03/2018 (ITA No.4058/Mum/2017). This factual matrix was not controverted by the Ld. DR, Shri Saurabh Kumr Rai. However, the Ld. DR defended the disallowance made by the Ld. Commissioner of Income Tax (Appeal). 2.1. We have considered the rival submissions and perused the material available on record. In view of the above, we are reproducing hereunder the relevant portion from the aforesaid order of the Tribunal dated 06/03/2018 for ready reference and analysis:- T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Lands End Co-operative Housing Society Ltd. vs ITO, in ITA No. 3566/Mum/2014 has the provisos of section 80P(2)(d) of the act provides for deduction in respect of income of a co-operative society by way of invest for dividend from its investments with other co-op society if such income is included in the gross total income of the such co-op society. In view of these facts and circumstances we are of the considered view that the assessee is entitled to the deductions of ₹ 14,88,107 in respect of interest received/ derived by it on deposit with co-op banks and therefore the appeal of the assessee is allowed by reversing the order of the CIT(A). The AO is directed accordingly. 5.9 In the case of the advocates mutually aided Co-operative Society Vs ACIT(2015), in ITA No. 546,547 1331/Hyd/2103, it was held by the Hon'ble ITAT, Hyderabad Bench that provisions of sections 80P(4) does not apply as the assessee society is not in the business of Banking and that sections 80P(2)(d) is applicable to the assessee society in respect of interest received from other Co-operative Society including Co-operative Banks. In Sabarkantha District Co-operative Milk produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th coop, banks and therefore the appeal of the assessee is allowed by reversing the order of the CTT(A). The AO is directed accordingly . 5.12 In the ACIT vs. M/s. Jawala Cooperative Urban Thrift Credit Society Ltd., - it was held that We have heard rival parties and have gone through the material placed on record. We find that total income earned by the assessee included income on fixed deposits placed with Bombay Mercantile Bank, interest income from a scheduled bank and dividend income from Delhi Cooperative Bank. From the certificate as placed at paper book page 30, we find that Bombay Mercantile Cooperative Bank is a cooperative society registered under Maharashtra Cooperative Societies Act and we further find that the said society has been assessed u/s 143(3) as a cooperative society and its income was allowed to be exempt u/s SOP(2) (i) as held by Mumbai Tribunal in I. T.A. No. 4128 and 4129 vide its order dated 30.11.2005, for Assessment Year 1990-91 and 1991-92 and further by Mumbai Tribunal vide order dated 07.09.2011 in I.T.A. No. 5292 for Assessment Year 1997-98. Therefore it is held that fixed deposits placed with Bombay Mercantile Bank falls within the exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various benches of Tribunal held that assessee-Co-operative society is eligible for deduction u/s. 80P. The finding recorded by CIT(A) has not been controverted by learned DR by bringing any positive material on record. Accordingly, I do not find any reason to interfere in the order of CIT(A). 7. In the result, appeal of the Revenue is dismissed. 2.2. The facts in brief, in the present appeal, are that the assessee is a employees co-operative credit society catering to its members. The main activity carried out by the society was mainly borrowing from banks and lending of funds/providing credit facilities to its own members under various schemes formulated by it. During assessment proceedings, the Ld. Assessing Officer observed that the assessee showed total receipt of ₹ 22,21,52,042/- by way of interest including interest from deposits in MDC Co-operative bank amounting to ₹ 57,22,046/-. The Ld. Assessing Officer further observed that the assessee claimed deduction of ₹ 4,45,67,962/- u/s 80P(2)(a)(i) and ₹ 61,75,706/- u/s 80P(2)(d) of the Act. As such the assessee claimed total deduction of ₹ 5,07,43,668/- u/s 80P of the Act, which was denied b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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