TMI Blog2022 (3) TMI 1350X X X X Extracts X X X X X X X X Extracts X X X X ..... t interest was received from cooperative bank not from cooperative society has no legs to stand as a cooperative bank is also a cooperative society as held by the Karnataka High Court in the case of CIT vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot [ 2015 (1) TMI 821 - KARNATAKA HIGH COURT] As regards to the eligibility of exemption u/s 80P(2)(d), this issue was considered by the Hon ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] wherein referring to the case of Totgars Co-operative Sales Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) held not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has erred in law and on merit in upholding the disallowance u/s 80P(2)(d) of ₹ 1,71,51,013/- on account of interest received from Saraswat co-op bank. 2) On facts and in circumstances of the case the Learned A.O. has erred in law and on merit in holding that a Co-op Bank does not fall under the purview of coop society referred to in section 80P(2)(d) of The Act. 3) On facts and in circumstances of the case the Learned A.O. has erred in law and on merit in levying interest under section 234A, 234B 234C of the Act. 4) The appellant craves for leave to amend, modify or add to any of the above grounds of appeal and / or take any additional ground of appeal, if necessary. 5. Briefly, the facts of the case are that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is in appeal before us. 8. When the appeal was called on for hearing, none appeared on behalf of the appellant despite due service of notice of hearing. 9. On the other hand, ld. CIT-DR placing reliance on the orders of the lower authorities submitted that the appellant is not entitled for exemption u/s 80P(2)(d) of the Act as the appellant society received interest from another cooperative bank and also placed reliance on the decision of the Co-ordinate Bench of this Tribunal in the case of Vikas Sahakari Sakhar Karkhana Ltd. vs. PCIT in ITA No.1911/PUN/2018 for A.Y. 2013-14, order dated 24.09.2020. 10. We heard the rival submissions and perused the material on record. The issue in the present appeal relates to the allowability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) and not u/s 80P(2)(a)(i) of the Act. 12. Even the decision of Pune Bench of the Tribunal in the case of Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO, 120 taxmann.com 10 wherein the Tribunal after making reference to the decisions of the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) and having noticed the divergent views of the Hon ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Co-op. Ltd. vs. ITO, 55 taxmann.com 447 and the Hon ble Delhi High Court in the case of Mantola Cooperative Thrift Credit Society Ltd. vs. CIT, 50 taxmann.com 278, decision of the Hon ble Delhi High Court in the case of Mantola Cooperative Thrift Credit Society Ltd. (supra) had not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is concerned, we find that the issue in that case was the eligibility of deduction u/s.80P(2)(d) of the Act on interest earned by the assessee co-operative society on investments made in co-operative banks. In that case, the assessee was engaged in the activity of marketing agricultural produce by its members; accepting deposits from its members and providing credit facility to its members; running stores, rice mills, live stocks, van section, medical shops, lodging, plying and hiring of goods and carriage etc. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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