TMI Blog2022 (11) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... dia Vs. CIT [ 2016 (7) TMI 516 - GUJARAT HIGH COURT] reached the conclusion that interest income earned by co-operative society on its investment held with co-operative bank would be eligible for claim of deduction under section 80P(2)(d) of the Act. Thus interest income earned by assessee society from parking its surplus funds with SVC Co-operative Bank Ltd would be eligible for claim of deduction under section 80P(2)(d) of the Act as the co-operative bank also falls in the category of society registered under the Co-operative Society Act, 1912 (20/1952) or under any other law for the time being in force in any state for the registration of co-operative society. Appeal of assessee allowed. - I.T.A No.2347, 2348, 2349, 2350, 2351/Mum/2022 - - - Dated:- 1-11-2022 - SHRI KULDIP SINGH ( JUDICIAL MEMBER ) Assessee represented by : None Revenue represented by : Shri Rajendra Chandekar ORDER Aforesaid inter-connected appeals bearing common questions of law and facts are taken up for disposal by way composite order in order to avoid the multiplicity of discussion. 2. The Appellant, M/s Jal Ratan Deep Co-operative Housing Society Ltd (hereinafter referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssertions, legal provisions and various case laws quoted in the written submission. 4. Attracted Section - Section 143(l)(a) Issue - CPC Superseded the conferred Power under section 143(l)(a) On the facts and the circumstances of the case the Central Processing Centre (CPC) of The Income Tax Department erred in disallowing the deduction claimed under section 80(P)(2)(d) of the chapter VI - A that is interest/dividend from investment in other co-operative societies. CPC has superseded the authority and power conferred to it under clause 'a' of subsection 1 of section 143 per say of the act to make adjustment for six categorized situations. Hence such an act of adjustment without any authority to make such an adjustment is not justifiable. Such a disallowance of deduction by CPC is simply abuse of authority and is an act of ultra vires to entrusted authority by law. 5. Attracted Section - Section 80(P)(2)(d) Issue - CPC erred in Disallowing the deduction claimed under section 80(P)(2)(d) without giving any valid reason. On the facts and in the circumstances of the case and in law, the CPC erred in disallowing claim of deduction of Rs. 17,57,654/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng information from the office of Joint DIT (I CI), Unit-1, Mumbai, assessments were reopened by initiating the proceedings under section 147 / 148 of the Act. Assessing Officer, after declining the contention raised by the assessee, proceeded to disallow the claim of deduction of Rs.9,35,000/- (AY 2011-12), Rs.9,35,000/- (AY 2014-15), Rs.22,42,312/- (AY 2016-17), 18,18,106/- (AY 2017-18), Rs.17,57,650/- (AY 2020-21) under section 80P(2)(d) of the Income-tax Act, 1961 in respect of the interest income earned on investment in fixed deposit with co-operative bank, namely, SVC Cooperative Bank Ltd and thereby framed the assessment under section 143(3) read with section 147 of the Act. 3. Assessee carried the matter before the Ld.CIT(A) by filing appeals who has confirmed the disallowance made by the Assessing Officer by partly allowing the same. Feeling aggrieved, the assessee has come up in appeal before the Tribunal by way of filing present appeals. 4. Notices for appearance of the assessee society in these appeals were sent which were duly served, but none appeared on behalf of them. Consequently, the Bench decided to dispose of these appeals on the basis of material availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for both the parties in context of the aforesaid issue under consideration. As stated by the Id. A.R, and rightly so, the issue that interest received by a co-operative society on its deposits with co-operative banks would be eligible for deduction u/s 80P(2)(d) of the Act is covered in assessee's favour by orders of the various coordinate benches of the Tribunal in the following cases : (i). M/s Solitaire CHS Ltd. Vs. Pr.CIT-26, Mumbai, ITA No. 3155/Mum/2019, dated 29.11.2019 (ii). Land and Cooperative Housing Society Ltd. Vs. ITO (2017) 46 CCH 52 (Mum.) (ill). M/s C. Green Cooperative Housing and Society Ltd. Vs. ITO-21(3)(2), Mumbai (ITA No. 1343/Mum/2017, dated 31.03.2017. (iv). Marvwanjee Coma Park Cooperative Housing Society Ltd. Vs. ITO-Range 20(2)(2), Mumbai (ITA NO. 6139/Mum/2014, dated 27.09.2017. (v). Kaliandas Udyog Bhavan Pemises Co-op. Society Ltd. Vs. ITO, 21(2)(1), Mumbai. In the aforesaid orders, it has been held by the Tribunal that though the cooperative banks pursuant to the insertion of sub-section (4) to Sec. SOP of the Act would no more be entitled for claim of deduction u/s SOP of the Act, but as a co-operative bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision, viz. Sec. 80P(2)(d), as the same would have a strong bearing on the adjudication of the issue before us. 80P(2)(d) (1). Where in the case of 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 subsection (2), in computing the total income of the assessee. (2). The sums referred to in sub-section (1) shall be the following, namely (a)................................................. ........................................... (b)............................................................................................ (c)....................... ..................................................................... (d) in respect of any income by way of interest or dividends derived by the cooperative society from its investments with any other co-operative society, the whole of such income; On a perusal of Sec. 80P(2)(d), it can safely be gathered that interest income derived by an assessee co-operative society from its investments held with any other co-operative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction under Sec. 80P(2)(d) on the interest income derived from its investments held with a co-operative bank is covered in favour of the assessee in the following cases: (i) Land and Cooperative Housing Society Ltd. Vs. ITO (2017) 46 CCH 52 (Mum) (ii) M/s C. Green Cooperative Housing and Society Ltd. Vs. ITO-21(3)(2), Mumbai (ITA No. 1343/Mum/2017, dated 31.03.2017 (Hi) Marvwanjee Cama Park Cooperative Housing Society Ltd. Vs. ITO-Range- 20(2)(2), Mumbai (ITA No. 6139/Mum/2014, dated 27.09.2017. (iv). Kaliandas Udyog Bhavan Pemlses Co-op. Society Ltd. Vs. ITO, 21(2)(1), Mumbai. We further find that the Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon ble High Court of Gujarat in the case of State Bank Of India Vs CIT (2016) 389 ITR 578 (Guj), had held, that the interest income earned by the assessee on its investments with a co-operative bank would be eligible for claim of deduction under Sec. 8_(W(2)(d) of the Act. Still further, we find that the CBDT Circular No. 14, dated 28.12.2006, also makes it clear beyond any scope of doubt that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operative society on its investments held with a cooperative bank would be eligible for claim of deductionunder Sec.80P(2)(d) of the Act. 8. We have perused the findings returned by co-ordinate bench of Tribunal in case of Petit Towers Co-operative Housing Society Ltd (supra), which is on identical issue, co-ordinate bench of Tribunal by distinguishing the case laws rendered by Hon ble Supreme Court in the case of Totagar s Co-operative Sale Society Ltd vs ITO (2010) 322 ITR 283(SC) and by following the decision rendered by Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income Tax and Anr. vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Honble High Court of Gujarat in the case of State Bank Of India Vs. CIT (2016) 389 ITR 578 (Guj), reached the conclusion that interest income earned by co-operative society on its investment held with co-operative bank would be eligible for claim of deduction under section 80P(2)(d) of the Act. 8A. It is also discussed in the order that as per judgement rendered by Hon ble Bombay High Court in the case of K. Subramanian and Anr. Vs Siemens India Ltd and Anr (1985) 156 ITR 11 (Bom) where there is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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