TMI Blog2022 (11) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80P(2)(d). We also observed that in the case of Totagars Cooperative Sales Society Ltd, [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] itself the Hon ble High Court of Karnataka has allowed the claim of deduction u/s 80P(2)(d). Considering all the judgments we hereby hold that the investment of assessee in cooperative bank is eligible investment u/s 80P(2)(d) of the Act. The interest of the said investment related to Cooperative Society, assessee is eligible for deduction u/s 80P(2)(a)(i) of the Act. Accordingly the appeals of the assessee are allowed. Appeal of assessee allowed. - ITA.No.46/PAN/2021 - - - Dated:- 25-11-2022 - Shri Satbeer Singh Godara, Judicial Member For the Assessee : Shri Rajendra Bhobe For the Revenue : Shri N. Shrikant ORDER This assessee s appeal for assessment year 2017- 18, arises against the National Faceless Appeal Centre Delhi s order dated 29.11.2021, in DIN Order No.ITBA/NFAC/S/250/2021-22/1037319684(1), in proceedings u/s. 143(1) of the Income Tax Act, 1961 (in short the Act ). 2. Heard both the parties. Case file perused. 3. Coming to the sole substantive grievance of the x that both the lower authorities hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable for the exemption u/s 80P of the Act. Section 80P(4) is not affected in this particular deduction. The Revenue is wrongly interpreted the section 80P(4) and the judgment of the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd, supra. 6. The Ld. DR vehemently argued and relied that the assessee invested in Cooperative Bank and the interest earned from the Cooperative Bank is not eligible u/s 80P(4). Section 80P(4) only restricted investment in the Cooperative Society not in bank. So the order of the Ld. CIT(A) is maintainable. ITA Nos. 170 171/PAN/2018 Ors The Begaum Manfacturers Coop. Ors v. ITO 8 7. The Ld. counsel further argued that the assessee is registered under Cooperative Society Distt. Belagavi under department of Cooperative, Government of Karnataka bearing certificate no. 10161 dated 29.11.2003. The assessee is eligible for deduction of the interest or dividend derives by its investment which other Co-operative Society also from co-operative bank. It was argued that the assessee has earned interest from Cooperative Bank which are primarily Cooperative society. So, the assessee is rightly eligible for deduction u/s 80P(2)(d). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which are not less than one lakh of rupees; and (3) the bye-laws of which do not permit admission of any other co-operative society as a member. 9. We heard the rival submissions and perused the material available on record. 10. Having discharge the matter in the issue of section 80P(2)(a)(i), the claim of assessee for deduction is viewed as follows:- 10.1. The Cooperative Bank wherein the assessee deposited out of its surplus funds for earning interest. Then, the only interest was earned by the assessee on the deposit would be eligible for deduction u/s 80P(2)(d). The definition of the Cooperative Society is bought in larger umbrella under which the Cooperative Banks is performed. In this consideration we relied on the catena of judgments which are as follows:- a) In the case of Tumukur Merchants Souhard credit coop limited Vs. The income Tax officer ward-1 Tumkur, [2015] 55 taxmann.com 447 (Karnataka) 10. In the instant case, the amount which was invested in banks to earn interest was not an amount due to any members. It was not the liability. It was not shown as liability in their account. In fact this amount which is in the nature of profits and gains, was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the investments held with the co-operative bank would be entitled for claim of deduction under Sec. 80P(2)(d). d) In the case of Tirupati Campus PH. II CO-OP HOUSING SOCIETY MARYADIT VERSUS THE NCOME TAX OFFICER WARD -7 (4), PUNE (ITAT_Pune) ITA No.1429/PUN/2018, AY-2015-16, Date of Order 28/02/2019. 5. I have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to denial of claim of deduction u/s 80P(2)(d) of the Act. The claim of deduction by the assessee was denied by the AO with respect to the interest income earned from Saraswat Co-operative Bank on the ground that the same is not a Co-operative Society. I find that the Co-ordinate Bench of the Delhi Tribunal in the case of M/s. The Veer Cooperative Group Housing Society Limited (supra) has held that Sarswat Co-operative Bank to be a Cooperative Society and the interest earned therein to be entitled to claim deduction u/s 80P(2)(d) of the Act. I further find that Co-ordinate Bench of the Mumbai Tribunal in the case of Lady Ratan Tower Cooperative Housing Society Ltd., (supra) and after relying on the decision in the case of Kaliandas Udyog Bhavan Premises Coo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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