TMI Blog2022 (12) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... n banking business or providing credit facilities to its members, thus find that the alleged interest income is not earned by the assessee from its members and therefore, not eligible for deduction u/s. 80P(2)(i) of the Act. On going through the provisions of section 80P(2)(d) of the Act the co-operative society is eligible for deduction of income in respect of any income by way of interest or dividends derived from its investments with any other co-operative society, Now the assessee has earned interest income from Burdwan Central Cooperative Bank Ltd. Though the Burdwan Central Co-operative Bank Ltd is having license under the Banking Regulation Act, 1949 to carry on Banking Business, but basically it is a cooperative society, which has been allowed to do banking business under the said Banking Regulation Act, 1949. Section 80P(2)(d) only refers to word co-operative society and it has not been specifically mentioned under the said provisions of the Act that investments made in cooperative banks are to be excluded. In my humble understanding since the cooperative banks are basically co-operative societies only therefore, the words cooperative society mentioned in Sec. 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Faceless Appeal Centre, has erred in not considering the provisions of section 80P(2)(d) and not allowing benefit to your appellant also by not considering the decision of the Apex Court in the case of National Thermal Power Company Limited vs. CIT(1998) 229 ITR 383, that point of law can be raised before any authority. Ground- 5. For that in the facts and in the circumstances of the case Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, has erred in considering the issue as debatable one based on the judgment of Hon'ble Apex Court delivered in Totgar's Cooperative Sale Society Limited vs. ITO 322 ITR 283(S.C.) which is not applicable to your appellant. Ground- 6. For that in the facts and in the circumstances of the case Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, has erred in not providing your appellant the natural justice. Ground- 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee 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 vehemently argued supporting the orders of both the lower authorities. 9. We have heard the rival contentions and perused the records placed before us. The effective issue before us is that whether the assessee is eligible for deduction u/s. 80P of the Act for the interest earned on fixed deposits and recurring deposits held with Burdwan Central Co-operative Bank Ltd. Though this issue of deduction u/s. 80P(2)(d) of the Act was not raised before the authorities below, but in view of the judgment of Hon ble Apex Court in the case of National Thermal Power Corporation Ltd. 229 ITR 383, I admit this legal ground. 10. Now before proceedings to adjudicate the issue I would like to pursue the provisions of section 80P of the Act, which reads as under:- Deduction in respect of income of co-operative societies. 80P. (1) *** *** *** (2) The sums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or in addition to, all or any of the activities so specified), so much of its profits and gains attributable to such activities as does not exceed,- (i) where such co-operative society is a consumers' co-operative society, one hundred thousand rupees; and (ii) in any other case, fifty thousand rupees. Explanation.-In this clause, consumers' co-operative society means a society for the benefit of the consumers; (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments 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 interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank and as far as deduction u/s. 80P(2)(i) is concerned, which refers to income earned from carrying on banking business or providing credit facilities to its members, I find that the alleged interest income is not earned by the assessee from its members and therefore, not eligible for deduction u/s. 80P(2)(i) of the Act. 13. However, on going through the provisions of section 80P(2)(d) of the Act the co-operative society is eligible for deduction of income in respect of any income by way of interest or dividends derived from its investments with any other co-operative society, Now the assessee has earned interest income from Burdwan Central Cooperative Bank Ltd. Though the Burdwan Central Co-operative Bank Ltd is having license under the Banking Regulation Act, 1949 to carry on Banking Business, but basically it is a cooperative society, which has been allowed to do banking business under the said Banking Regulation Act, 1949. Section 80P(2)(d) only refers to word co-operative society and it has not been specifically mentioned under the said provisions of the Act that investments made in cooperative banks are to be excluded. In my humble understanding since the cooperative ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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