TMI Blog2021 (11) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... his issue was considered in the case of CIT vs. Totagars Cooperative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] wherein referring to the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] held that the exemption is not to be denied in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. Thus we hold that the interest income earned by the appellant society on investment made with the cooperative bank which are also cooperative societies is exempt from the Income Tax Act u/s 80P(2)(d) of the Act. Therefore, we hold that the lower authorities was not justified in denying the claim of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in this particular issue. 5. Any other grounds which may be raised during appeal hearing. 3. Briefly, the facts of the case are that the appellant is a consumer cooperative society registered under the Bombay Cooperative Societies Act, 1925. It is formed with the object of procuring foundry raw materials and selling them to its members and also providing immense services letting out godown and warehouses to its members. The return of income for the assessment year 2012-13 was filed on 13.12.2012 declaring total income of Rs.31,340/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-1(1), Belgaum ( the Assessing Officer ) vide order dated 11.08.2014 passed u/s 143(3) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cence from Reserve Bank of India to carry out the business of the banking. Then the issue that comes up for consideration is that whether the cooperative banks is also cooperative society or not?. This issue was considered by the Hon ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon ble High Court referring to the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) held that the exemption is not to be denied in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. Even the decision of Pune Bench of the Tribunal in the case of Sant Motiram Maharaj Sahakari Pat Sans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DTR 89 (Delhi) not allowing deduction u/s.80P on interest income earned from banks. Both the Hon'ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (2010) 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is concerned, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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