TMI Blog2022 (8) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... end under section 80P(2)(d) of the Act. That is, assessee-society has claimed deduction under section 80P(2)(d) of the Act, on interest and dividend income received from Co-operative societies and Co-operative Bank. Therefore, assessee-society is eligible to claim deduction u/s 80P(2)(d) of the Act, as held by the Hon'ble High Court of Gujarat in the case of Surat Vankar Sahkari Sangh Ltd. [ 2016 (7) TMI 1217 - GUJARAT HIGH COURT] . Therefore, we do not find any infirmity in the order of ld CIT(A).That being so, we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue are dismissed. - ITA No.123/SRT/2020 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts are that assessee before us Cooperative Credit Society Ltd; and filed its return of income for assessment year 2015-16 on 26.09.2015, declaring total income at Rs. Nil after claiming deduction u/s 80P of the Act to the tune of Rs.2,18,14,675/-. The assessee`s case was selected for scrutiny under CASS. Accordingly, notice u/s 143(2) of the Income tax Act was issued on 28.07.2016 and duly served on the assessee. Subsequently, a notice u/s 142(l) of the Act dated 29.05.2017 was issued and served on assessee. During the course of assessment proceedings, it was noticed by assessing officer that assessee society had earned interest income of Rs.2,21,91,839.76/- from Nationalized Banks and other Co-op Banks. Therefore, Assessing Officer iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank is Rs.1,66,83,334/- Interest received from Co-op. Societies is Rs.55,08,506/- Total = 2,21,93,840/- The assessee co-op Society has claimed deduction of the above interest income received. However, since the ITR pro forma does not allow further classification u/s 80P, the entire deduction is depicted as u/s 80P. The Ld. AO presumed that the assessee co-operative society, has claimed deduction u/s 80P(2)(d) and after detailed discussion on sec. 80P(2)(d), proceeded to disallow the same. I have examined the details heard the AR I find that the assessee CO-operative society has claimed the deduction u/s 80P(2)(a)(i) of the Act for the above interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of Banking or providing credit facilities to its members the whole of the amount of profit and gains of business attributable to any one or more of such activities are allowable. It further submitted that the Hon'ble ITAT, SMC Bench, Ahmedabad has decided interest income received from other than cooperative society is allowable u/s 80P(2)(a)(i) of the Act in the case of Shree Balaji Urban Co-operative credit Soc. Ltd. 6.1.2. On the perusal of the judgment of the Hon'ble ITAT SMC bench Ahmedabad in the ITA No. 2610/Ahd/2015 for AY.2012-13 in order dated 26.02.2016. The Hon'ble Bench had allowed the claim of the appellant relying on the earlier judgment of coordinate bench of ITAT Ahmedabad in the case of Amaalsad Vibhag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paper books are carefully perused. In the light of the detailed discussion made by Assessing Officer as well as assessee, now the issue has to be decided whether the assessee is eligible for deduction in respect of Co-op Bank Interest and Co-op Dividend, under section 80P(2)(d) of the Act. The Learned Departmental Representative (Ld. DR) for the Revenue submitted before us that in the assessee`s case, the 'interest income' under question was not the interest received from the members of the assessee-society for providing credit facilities to them. What was sought to be taxed u/s 56 is the interest income arising on the surplus invested in co-operative bank. In the instant case, the assessee-society regularly invested funds not imme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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