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TMI Blog2022 (11) TMI 1172X X X X Extracts X X X X X X X X Extracts X X X X ..... his common order. 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.240/PAN/2019 for the assessment year 2013-14 are stated herein. ITA No.240/PAN/2019, A.Y. 2013-14 : 4. The appellant raised the following grounds of appeal :- "1) The Learned Commissioner of Income Tax (appeal) Panaji failed to appreciate that the appellant has invested its statutory reserve fund , and other Earmarked Funds in apex Bank which is also a Cooperative Society and thereby earned interest on investment hence the Income is business income and not income under section 80P(2)(d) of the Income Tax Act, 1961. 2) The CIT(A) Panaji failed to consider that the provisions of Sec 40(a) (ia) is applicable from June 2015 and not ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time deposits received from its members. The Assessing Officer also made a disallowance on account of contribution made to Provident Fund (PF) of Rs.1,29,981/- on the ground that the contribution was not made to approved fund. The Assessing Officer also made addition on account of interest on investment of Rs.2,95,114/-, interest on saving deposit of Rs.31,607, interest receivable (investment) of Rs.3,29,957/- and dividend income of Rs.588/- totalling to Rs.6,57,266/- under the head "Income from other sources". 6. Being aggrieved by the above assessment order, an appeal was filed before the ld. CIT(A) who vide impugned order partly allowed the appeal by setting aside the disallowance made u/s 40(a)(ia) for verification of the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein under :- "8. We heard the rival submissions and perused the material on record. The only issue in the present appeal is pertaining to the allowability of deduction under the provisions of section 80P(2)(d) of the Act. On perusal of provisions of section 80P(2)(d), it is clear that the income derived by a cooperative society from its investment held with other cooperative societies shall be exempt from the total income of a cooperative society. Therefore, what is relevant for claiming of deduction u/s 80P(2)(d) is that interest income should have been derived from the investment made by the assessee cooperative society with any other cooperative society. In the present case, the reasoning given by the lower authorities for denial o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. (supra). The relevant observation of the Pune Bench of the Tribunal in the case (supra) is as under :- "9. The Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016, dated 9-4-2019) decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014, dated 19-8-2015) has allowed similar deduction. In the said case, the Tribunal discussed the contrary views expressed by the Hon'ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80P(2)(d) of the Act. When we consider the impact of this decision, it turns out that the same is not germane to case under consideration in view of the position that the claim of the instant assessee is directly about the eligibility of deduction u/s.80P(2)(a)(i) of the Act and not u/s.80P(2)(d). Moreover, so many decisions relied on by the ld. AR amply go to prove that the view taken by the AO, cannot by any standard, be construed as not a possible view. We, therefore, hold that the ld. Pr. CIT was not justified in exercising the revisional power anent to interest income of Rs.22,34,270/- earned on investments made with co-operative banks." 10. Respectfully following the above decision of the Co-ordinate Bench of this Tribunal (supra), I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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