TMI Blog2022 (6) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... see has deposited amount with Villupuram District Co-operative Bank, which is a bank regulated by RBI and Banking Regulation Act, 1949, the interest earned from the deposits made with the same cannot be claimed as deduction u/s. 80P(2)(d) of the Act, because it does not fulfill the condition as prescribed under clause (d), which says that the deduction can be claimed in respect of any income by way of interest or dividend derived by co-operative society from its investment with any other co-operative society and not with the bank or co-operative bank governed by the regulation of RBI and the Banking Regulation Act, 1949. In view of the above, we dismiss the appeal of assessee. - ITA Nos. 1, 2/CHNY/2021, C.O. Nos. 4, 5/CHNY/2022 in I.T.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring this period 15.03.2020 to 14.03.2021 and they have condoned the delay up to 28.02.2022 in Miscellaneous Application No. 21 of 2022 vide order dated 10.01.2022. In term of the directions of Hon'ble Supreme Court, we condone the delay in filing of these appeals by Revenue and admit the appeals for adjudication. 3. During the course of hearing before us, the learned AR for the assessee pointed out that the tax effect in these appeals is below Rs. 50.00 lakhs. The learned AR for the assessee further submitted that in view of the CBDT Circular No. 17/2019, dated 08.08.2019 brought out by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, the appeals were not maintainable and be dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be condoned during this period 15.03.2020 to 14.03.2021 and they have condoned the delay up to 28.02.2022 in Miscellaneous Application No. 21 of 2022 vide order dated 10.01.2022. In term of the directions of Hon'ble Supreme Court, we condone the delay in filing of this appeal by assessee and admit the appeal for adjudication. 7. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of AO in disallowing the claim of exemption u/s. 80P(2) of the Act on interest earned from Villupuram District Co-operative Bank. For this, assessee has raised following 8 grounds:- 1. The learned CIT (Appeals) is not justified in upholding the view that the interest earned from Villupuram State Co-opera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in approving the linkage effect of mutuality theory of income from Co- operative Societies which is conceptually divorced under the exemption provision of section 80P of the Act. 8. The learned CIT (Appeals) is not justified in sustaining the addition o Rs. 33,12,720/- as not confirming to the provision of sec. 80(P) of the Act. 8. Brief facts are that the assessee during the assessment year 2015-16 relevant to the assessment year 2016-17, the assessee cooperative society engaged in public distribution and running of wholesale stores in the district of Villupuram earned interest income from deposits made with Villupuram District Co-operative Bank amounting to Rs. 33,12,720/-. The assessee while filing return of income claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arlier held that deduction u/s. 80P was allowable from on the interest receipt from Co-operative Banks and had arrived at different judgment. It had also referred to a number of judgments of other Hon'ble High Courts. The Court was also of the view that decision of Hon'ble Apex Court in the case of Totgar Co-operative Sale Society Ltd. vs ITO (2010) 322 ITR 283 (SC) has binding precedent on the subject. I have not seen any subsequent judgment of any other High Court in which contrary view has been taken. I also have not seen decision of Hon'ble Jurisdictional Tribunal favouring appellant on the subject. The case laws relied upon by the A/R are not applicable to the case of the present assessee. The Hon'ble Apex Court, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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