9911796707
TMI Blog2022 (12) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... ntre), Delhi 2. The assessee has raised the following grounds of appeal:- Ground-1. For that in the facts and in the circumstances of the case Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, has erred in Law ignoring the fact that, Primary Agricultural Credit Societies(PACS) are entitled to get deduction of the Interest received from other cooperative societies under section 80P(2)(d) of the Income Tax Act 1961. Ground- 2. For that in the facts and in the circumstances of the case Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, has erred for not considering the fact that appellant is a Primary Agricultural Credit Society enjoying the special provisions in the West Bengal Cooperative Societie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d- 7. For that the assessee craves leave to alter, add, amend, moderate, substitute or delete anyone or more of the ground or grounds of appeal at any time before or in course of hearing. 3. Though the assessee has raised seven(7) grounds of appeal, but the main grievance of assessee is with regard to allowability/allowable of deduction u/s. 80P(2)(d) of the Act for the interest income earned on the investments held with other co-operative society. 4. Brief facts of the case are that the assessee is a cooperative society registered under the West Bengal Co-operative Societies Act, 1983 and it is a Primary Agricultural Credit Co-operative Society. Nil income declared in the return filed on 25-03-2018 after claiming deduction u/s, 80P of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(a)(i) of the Act for the alleged interest income, the issue which is pointed out is not apparent mistake subject to rectification and lastly directed the ld.AO that if the profits and gains from the activities of credit facilities and banking increases due to Interest Income being considered separately under other head, the appellant/assessee would be entitled to deduction u/s. 80P of the Act. 6. Aggrieved, now the assessee is in appeal before this Tribunal. 7. The Ld. Counsel for the assessee stated that the alleged interest income is received from investments made in co-operative bank and eligible for deduction u/s80P(2)(d) of the Act and ld. CIT(A) ought to have given said relief. 8. Per contra, the Ld. Departmental Representative v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members, the whole of the amount of profits and gains of business attributable to any one or more of such activities : Provided that in the case of a co-operative society falling under sub-clause (vi), or sub-clause (vii), the rules and bye-laws of the society restrict the voting rights to the following classes of its members, namely:- (1) the individuals who contribute their labour or, as the case may be, carry on the fishing or allied activities; (2) the co-operative credit societies which prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts with any other co-operative society, the whole of such income; (e) in respect of any income derived by the co-operative society from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities, the whole of such income; (f) in the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities or any income from house property chargeable under section 22. Explanation.-For the purposes of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide for long-term credit for agricultural and rural development activities. 11. As far as section 80P(4) of the Act, it only provides that provisions of section 80P shall not be applied in relation to any cooperative bank other than agricultural credit society or any agricultural rural bank. In simple words such cooperative Bank cannot claim deduction u/s.80P(2) & 80P(3) of the Act. Since the assessee is not a cooperative bank, but a Primary Agricultural Credit Society therefore, provisions of section 80P(4) of the Act is not applicable and thus, it is entitled to deduction u/s. 80P of the Act to the extent allowable as per relevant provisions. 12. Now the alleged interest income of Rs. 16,04,004/- is earned from idle funds invested ..... X X X X Extracts X X X X X X X X Extracts X X X X
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