TMI Blog2023 (2) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... Court. Therefore, the reopening is justifiable and the contentions of the assessee is rejected. As regards the decision of Mavilayi Service Co-operative Bank Limited (supra), the Hon ble Apex Court has clearly mentioned that deduction that is given without any reference to any restriction or limitation cannot be restricted or limited by implication, as is sought to be done by the Revenue in the present case by adding word agriculture into Section 80P(2)(a)(i) of the Act when it is not there. In the present case, the assessee society has invested business income with S.K. District Central Co-operative Bank Limited which is member of Co-operative Society and such investments and interest earned thereon is coming under the purview of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in as much as the assessee is a co-operative credit Society and has received the interest from the SK Dist Co. Op. Bank and other Nationalized banks carrying on business in banking and therefore the interest is deductible under Section 80P(2)(a)(i) as per following cases: (i) Pr. CIT vs. Ekta Co-operative Credit Society Limited, 91 taxman.com 42, 402 ITR 85 (Guj.) (ii) CIT vs. Jafari Momin Vikas Co-operative Credit Society Limited (2014) 49 taxmann.com 571, 362 ITR 331 (Guj). (iii) ACIT vs. Peoples Co. Op. Credit Society Limited (2019) 107 txmann.com 53 (Ahmedabad Trib)(SB) 2019 177 ITD 25 (Ahmedabad Trib) (SB). And further investment made it out of operational funds and not out of surplus funds and therefore the SC de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 after taking prior approval of the Addl. Commissioner of Income Tax. The assessee company is a Co-operative Society of Modasa Taluka in the Aravalli District and engaged in the business of providing credit facilities to its members. The assessee society earned net income of Rs.24,18,618/- from the total receipts of Rs.95,61,841/-. The assessee made investment with Bank S.K. District Central Co-operative Bank Limited and other nationalised banks and, therefore, earned interest income of Rs.35,34,700/-. The Assessing Officer after taking cognisance of the submissions of the assessee disallowed Rs.24,69,373/- in respect of deduction under Section 80P claimed by the assessee. 5. Being aggrieved by the assessment order, the assessee file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is pertinent to note that the Hon ble Supreme Court in the case of Mavilayi Service Co-operative Bank Limited (supra) has considered the investments and the income derived from the interest income in respect of Co-operative Banks as well as other Banks. As regards to reopening, the Assessing Officer, after taking proper approval has reopened the issue because the Assessing Officer has not taken the cognisance of the decisions of the Hon ble Apex Court. Therefore, the reopening is justifiable and the contentions of the assessee is rejected. As regards the decision of Mavilayi Service Co-operative Bank Limited (supra), the Hon ble Apex Court has clearly mentioned that deduction that is given without any reference to any restriction or limita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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