TMI Blog2021 (5) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... erest income on fixed deposits with the cooperative banks. Computation of deduction u/s. 80P(2)(d) - Whether the assesses claim of deduction u/s. 80P(2)(d) of the Act can be accepted on the bases of revised computation of income? - HELD THAT:- In the present case, the assessee had reflected interest income in the Balance Sheet. Drawing analogy from decisio RAMCO INTERNATIONAL [ 2008 (12) TMI 413 - PUNJAB AND HARYANA HIGH COURT] we hold that the assessee s claim of deduction u/s. 80P(2)(d) was not a fresh claim, the details were already available on record. It is pertinent to mention here that no separate form or certificate is required to be filed for claiming deduction u/s.80P. By filing revised computation of income, the assessee merely regularised its claim of deduction. Thus, in peculiar facts of the case, we answer second question in favour of the assessee. However, we restrict the assessee s claim of deduction u/s.80P(2)(d) of the Act to the extent of interest income from Cooperative Banks only. - ITA NO.4575/MUM/2019 - - - Dated:- 9-4-2021 - Shri Vikas Awasthy, Judicial Member And Shri S.Rifaur Rahman, Accountant Member For the Appellant : Shri Priyesh S. Khi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund is eligible for deduction under section 80P (2)(d) of the Act. 3.1. The ld. Authorised Representative of assessee to support his contention that the assessee s claim of deduction u/s.80P(2)(d) of the Act should be entertained on the bases of revised computation of income placed reliance on various decisions including: i. CIT vs. Bharat Aluminium co. Ltd., 303 ITR 256 (Del.); ii. CIT vs. Ramco International, 332 ITR 306 (P H); iii. CIT vs. Pruthvi Brokers Shareholders Pvt. Ltd., 349 ITR 336 (Bom.). 4. Per contra, Shri Sanjay J. Sethi representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of the assessee. The ld. Departmental Representative submitted that in the first instance the assessee has not shown interest income from Co-operative Banks in the return of income. In any case assessee s claim of deduction under section 80P(2)(d) is not allowable after insertion of sub-section (4) by the Finance Act 2006 w.e.f. 01/04/2007. 5. We have heard the submissions made by rival sides and have examined the orders of authorities below. The assessee has earned interest income of ₹ 1,47848/- from Co-operative Banks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whole of such income; Thus, from a perusal of the aforesaid Sec. 80P(2)(d) it can safely be gathered that income by way of interest income derived by an assessee co-operative society from its investments held with any other cooperative society, shall be deducted in computing the total income of the assessee. We may herein observe, that what is relevant for claim of deduction under Sec. 80P(2)(d) is that the interest income should have been derived from the investments made by the assessee co-operative society with any other cooperative society. We though are in agreement with the observations of the lower authorities that with the insertion of Sub-section (4) of Sec. 80P, vide the Finance Act, 2006, with effect from 01.04.2007, the provisions of Sec. 80P would no more be applicable in relation to any co-operative bank, other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank, but however, are unable to subscribe to their view that the same shall also jeopardise the claim of deduction of a co-operative society under Sec. 80P(2)(d) in respect of the interest income on their investments parked with a cooperative bank. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the 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) to (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; 26. A cursory look of the above provision deciphers that any amount of interest or dividend derived by a Co-operative Society from its investments with any other Cooperative Society, is deductible under clause (d) of section 80P(2) of the Act. The ld. CIT(A) has given a categorical finding that assessee is a Co-operative Society and the Co-operative Bank from which the above-mentioned income was earned, is also a Cooperative Society duly registered under Maharashtra Cooperative Societies Act. This contention has not been controverted by the ld. DR with any cogent material or evidence. Thus, it is seen that the case of the assessee is fully covered u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cond question is whether the assesses claim of deduction u/s. 80P(2)(d) of the Act can be accepted on the bases of revised computation of income. The First Appellate Authority has rejected the claim of assessee by invoking the provisions of section 80A(5) of the Act. To answer this question it would be relevant to take a cue from the decision in the case of CIT vs. Ramco International (supra). In the said case the assessee failed to make claim of deduction u/s. 80IB in the return of income. However, the assessee had furnished Form 10 CCB and other requisite documents. Subsequently, the assessee made its claim u/s. 80IB by filing a letter. The CIT(A) accepted the claim of assesse holding that as per Form No. 10CCB filed during the assessment proceedings, the claim made by the assessee was admissible and the same remained to be allowed. In appeal before the Tribunal and the Hon ble High Court, the Department remained unsuccessful. The Hon ble High Court upheld the findings of Tribunal that the assessee was not making any fresh claim and had duly furnished the documents and submitted Form for claim under section 80-IB, there was no requirement for filing any revised return. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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