TMI Blog2022 (12) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... iety from its members on the credit is exempt from tax u/s 80P(2)(a)(i) of the Act. Thus, this ground of appeal stands allowed. As regards to the exemption of income earned from another cooperative society, this issue is no longer res integra as the issue was decided by the Co-ordinate Bench of the this Tribunal in the case of The Ugar Sugar Works Kamgar Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society [ 2021 (11) TMI 1117 - ITAT PANAJI] - Decided in favour of assessee. - ITA No. 250/PAN/2019 - - - Dated:- 24-11-2022 - SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER Assessee by : Shri Pramod Y. Vaidya Revenue by : Shri N. Shrikanth ORDER PER INTURI RAMA RAO , AM : This is an appeal filed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1977 is also a cooperative society as held by the Hon ble Karnataka High Court in the case of Swabhimani Souharda Credit Cooperative Ltd. vs. Government of India, 122 taxmann.com 37 (Karnataka) that a cooperative society registered under Karnataka Souharda Sahakari Act, 1977 within the meaning of section 2(19) of the Act should be considered a cooperative society placing reliance on the decision in the case of Government of India, Ministry of Finance vs. Karnataka State Souharda Federal Co-operative Ltd., 134 taxmann.com 170 (Karnataka). He further submitted that the appellant society was dealing with the nominal members, by itself does not disentitle the appellant society to claim exemption u/s 80P placing reliance on the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Co-ordinate Bench of the Tribunal (supra) is reproduced 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 cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court in the case of Tumkur Merchants Souharda Credit Co-op. Ltd. (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. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;ble High Court held that the assessee could not claim deduction u/s.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. 8. Respectfully follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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