TMI Blog2022 (10) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... rs Co-operative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] and 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 of interest derived from investments with the cooperative banks is allowed. Appeals by assessee are allowed. - ITA Nos. 1834 , 1835/MUM/2022 - - - Dated:- 29-9-2022 - SHRI PRAMOD KUMAR , VICE-PRESIDENT And SHRI VIKAS AWASTHY , JUDICIAL MEMBER Appellant by : Shri Rajesh Shah Respondent by : Shri Tejinder Pal Singh ORDER Per Vikas Awasthy , JM These two appeals by the assessee are directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;ble Apex Court in the case of Mavilayi Service Co-operative Bank Ltd. vs. CIT in Civil Appeal No. 7343-7350 of 2019 decided on 12/01/2021 to contend that the assessee is eligible for deduction under section. 80P(2)(d) of the Act on interest income earned from investments with Co-operative bank. The CIT(A) rejected the contentions of assessee and dismissed the appeal. 3. Similar are the facts and reasons for disallowance of assessee's claim of deduction under section 80P(2)(d) by the Assessing Officer and CIT(A) in assessment year 2018-19. The Ld. Authorized Representative of the assessee submitted that there are several decisions of the Tribunal, wherein deduction under section 80P(2)(d) of the Act have been allowed to the Co-ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Banks. The assessee has claimed deduction in respect of aforesaid interest income under the provisions of section 80P(2)(d) of the Act. If an interpretation of the Assessing Officer and the CIT(A) with regard to application of provisions of section 80P on interest income from Co-operative Bank has to be accepted, then the provisions of section 80P(2)(d) would become otiose. 6. The issue whether interest income derived from deposits with cooperative banks is eligible for deduction under section 80P(2)(d) of the Act or not has been considered by Tribunal in several cases. The coordinate Bench of the Tribunal in the case of Kaliandas Udyog Bhavan Premises Co-op Society Ltd. Vs. ITO, 94 taxmann.com 15 (Mumbai) after considering various d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments 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, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om its investments held with a co-operative bank, would be entitled for claim of deduction under Sec. 80P(2)(d) of the Act. [Emphasised by us] 7. The Hon'ble Karnataka High court in the case of PCIT vs. Totagars, Cooperative Sale Society 392 ITR 74 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. vs. ACIT, 421 ITR 134. 8. However, on the same issue Hon'ble Karnataka High court in the case of PCIT vs. Totagars, Co-operative Sale Society 395, 83 taxmann.com 140/ITR 611 (Karnataka) has taken a contrary view holding that interest income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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