TMI Blog2022 (5) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The Hon ble jurisdictional High Court is also in favour of the Assessee. Hon ble Supreme Court in the case of Mavilayi Service Co-operative Bank Limited [ 2021 (1) TMI 488 - SUPREME COURT] observed that whether the Assessee is registered as a primary agricultural credit society, it is entitled for the benefit of deduction u/s.80P(2) of the Act, notwithstanding that it was also giving loans to its members which is not related to agriculture. Respectfully considering the judicial observations, it is clear that, in the case of the interest earned from the co-operative bank, it does not come under the consideration of the income from other sources. The said interest is eligible for deduction u/s.80P(2) of the Act. Charges received fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2), Tambaram by order No. ITBA/AST/S/143(3)/2018-19/1014509508(1), Order dated 22.12.2018 passed u/s.143(3) of the Act. 2. At the outset, it is noticed that the appeal of the Revenue is time barred by 175 days. However, an application under Section 5 of the Limitation Act along with the Affidavit was filed by the Income Tax Officer mentioning the reason for delay in filing the appeal before the Hon ble Tribunal. The delay was due to Covid-19 pandemic. The learned ITO requested the Hon ble Bench to take into cognizance the Order of the Hon ble Supreme Court the Suo Moto WP 03/2020 dated 20.03.2020 while considering the condonation of delay. 3. On going through the affidavit filed by the Income Tax Officer, it is a fact that Covid- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) allowed two issues, i.e. one related to the deduction u/s.80P(2) and the other related to video / still photography charges. Being aggrieved, the Revenue filed an appeal before the Tribunal. 5. During the hearing, the learned DR vehemently argued and mentioned that the learned CIT(A) did not adjudicate the issues in a proper manner. He prayed that the bank interest earned by the Assessee is liable to be taxed under the head income from other sources . The learned DR further mentioned that the video / still photography charge is not a collective labour. So, this would come under perview of tax. He further prayed that the interest from the co-operative bank should not be treated as interest from cooperative society. So, the amount sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / still camera charges and interest income, the applicability of the same is discussed in the earlier paras. As decided by the CIT-VII, Chennai in order u/s.264 of the Income Tax Act in the case of M/s. Tamil Nadu Handloom Weavers Co-operative Society for the Assessment Year 2010-2011, it is held that the deduction u/s.80P(2)(a)(vi) is also eligible for video / still camera charges and interest income for the case under consideration. 6.1. He further pointed out that the issue related to the interest from the co-operative banks has already been decided in different judicial forums. Accordingly, he relied on the judgment of the Hon ble Madras High Court in the case of Commissioner of Income Tax, Salem Vs. The Salem Agricultural Producer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble Supreme Court in the case of Mavilayi Service Co-operative Bank Limited Vs. Commissioner of Income Tax, Calicut [2021] 123 Taxmann.com 161 (SC) observed that whether the Assessee is registered as a primary agricultural credit society, it is entitled for the benefit of deduction u/s.80P(2) of the Act, notwithstanding that it was also giving loans to its members which is not related to agriculture. Respectfully considering the judicial observations, it is clear that, in the case of the interest earned from the co-operative bank, it does not come under the consideration of the income from other sources. The said interest is eligible for deduction u/s.80P(2) of the Act. 8. As regards to the charges received from the video and still pho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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