TMI Blog2021 (8) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of PCIT vs. Totagars, Cooperative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] has held that for the purpose of section 80P(2)(d) of the Act, co-operative bank should be considered as cooperative society. Similar view has been taken by the Hon'ble Gujarat High court in the case of Surat Vankar Sahakari Sangh Ltd. [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] Accordingly, following the decision in the earlier case of Totagars Co-operative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] and in the case of Vankar Sahakari Sangh [ 2016 (7) TMI 1217 - GUJARAT HIGH COURT] the deduction claimed by the assessee under section 80P(2)(d) of the Act in respect interest derived from investments with the cooperative bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present appeal by the assessee. 3. Shri Sanjay J. Sethi representing the Department vehemently defended the impugned order and prayed for dismissing the appeal by assessee. The ld. Departmental Representative (DR) in support of his contentions placed reliance on the decision of Hon ble Karnataka High Court in the case of Totagar Co-operative Sale Society reported as 395 ITR 611, the ld. DR reiterated the reasons recorded by the authorities below for rejecting assessee s claim of deduction under section 80P(2)(d) of the Act. 4. We have heard the submissions made by ld. Departmental Representative and have examined the orders of authorities below. The assessee is a Co-operative Housing Society registered under Co-operative Housing Soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an assessee being a co-operative society, the 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 co-operative society from its investments with any other cooperative society, the 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 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perative society means a cooperative society registered under the Cooperative 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;' We are of the considered view, that though the cooperative bank pursuant to the insertion of Subsection (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but however, as a co-operative bank continues to be a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being enforced in any state for the registration of co-operative societies, therefore, the interest income derived by a cooperative society from its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 Cooperative 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendering the later judgement has not considered the earlier decision rendered in the case of Totagars, Co-operative Sale Society (supra). 9. No judgement by the Hon ble Jurisdictional High Court on this issue was brought to the notice of Bench. The Hon'ble Bombay High Court in the case of K. Subramanian vs. Siemens India Ltd. 156 ITR 11 has held that when two conflicting decisions of non-jurisdictional High Courts are available, the view that favours the assessee is to be preferred. Accordingly, following the decision of Hon'ble Karnataka High Court in the earlier case of Totagars Co-operative Sale Society (supra) and the decision in the case of Hon'ble Gujarat High Court in the case of Vankar Sahakari Sangh (supra), the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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