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TMI Blog2021 (3) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... sed. 2. It transpires at the outset that all these assessee's instant four appeals suffer from identical 411 days delay stated to be attributable to the following reason(s) beyond its control as per condonation petition/affidavit dt. 11-12-2020: "1. The term of the Managing Committee of the Society expired on 31/01/2018 and the elections was supposed to be held during January 2018. But the elections were not held instead the existing MC were directed to act as Person-In Charge till the regular MC takes charge after elections. Hence the MC headed by the President has not taken any steps to approach the Professionals for taking necessary action for filing further Appeals after receiving the CIT(A) Orders. 2. The election to the Socie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from fixed deposits in nationalised banks than cooperative banks. 5. I have given my thoughtful consideration to the above sole issue of 80P deduction. Suffice to say, hon'ble jurisdictional high court's decision in Vavveru Co-operative Rural Bank Ltd., Vs. CIT [ (2017) 396 ITR 371] (AP) holds the very nature of income as eligible for Section 80P deduction as under: "32. In simple terms, the position can be summarized like this. If there is a Co-operative Society, which is carrying on several activities including those activities listed in sub Clauses (i) to (vii) of Clause (a), the benefit under Clause (a) will be limited only to the profits and gains of business attributable to anyone or more of such activities. But, in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in Clause (a). Section 80P(2) is not intended to place all types of co-operative societies on the same pedestal. The section confers different types of benefits to different types of societies. Special types of societies are conferred a special benefit. 34. The case before the Supreme Court in Totgars was in respect of a Co-operative Credit Society, which was also marketing the agricultural produce of its members. As seen from the facts disclosed in the decision of the Karnataka High Court in Totgars, from out of which the decision of the Supreme Court arose, the assessee was carrying on the business of marketing agricultural produce of the members of the Society. It is also found from Paragraph-3 of the decision of the Karnataka High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table to" and not anyone of the two expressions, namely, "derived from" or "directly attributable to". 37. Therefore, we are of the considered view that the petitioners are entitled to succeed. Hence, the Writ Petitions are allowed, and the order of the Assessing Officer, insofar as it relates to treating the interest income as something not allowable as a deduction under Section 80P(2)(a), is set aside". 5.1. I adopt the foregoing detailed discussion mutatis-mutandis and direct the Assessing Officer to delete the impugned disallowance thereby treating that the assessee as eligible for Section 80P deduction. 6. These assessee's appeals are allowed. A copy of this common order be placed in the respective case files. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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