9911796707
TMI Blog2023 (2) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 2. At the outset, Ld. Counsel for the assessee submitted that issues raised by the assessee in both the appeals are common and identical. The issue involved in both the appeals are that Ld. CIT(A) denied the deduction under section 80P(2)(d) of Income Tax Act in respect of interest received from Co-operative banks. The Ld. Counsel submitted before the Bench two charts for ITA Nos. 438/SRT/2022 and 439/SRT/2022 for A.Ys.2017-18 and 2018-19 respectively, which are reproduced below: (a) For ITA No. 438/SRT/2022 for AY.2017-18: (b) For ITA No.439/SRT/2022 for AY.2018-19: 3. Therefore, Ld. Counsel contended that for AY.2017-18 (in ITA No. 438), the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t applicable to the facts of the appellant's case as the appellant-society has claimed deduction u/s 80P(2)(d) and not u/s 80P(2)(a) of the Act. Deduction u/s 80(P)(2)(a) is available only in respect of income which is assessable as business income and not as income from other sources. whereas in distinction to this, the provisions of Section 80(P)(2)(d) of the Act provides for deduction in respect of income of a co-op society by way of interest or dividend from its investments with other co-op society if such income is included in the gross total income of the such Co-op society. In other words, Section 80(P)(2)(d) allows the deduction of interest received by a cooperative society from any other cooperative society which may also be a coop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety Ltd ITA No.1670 & 1671/Ahd/2018 dtd 28.02.2019. In all these cases, it was held that interest income earned by assessee co- Operative Bank is eligible for deduction u/s 80P(2)(d). The Hon Guj. High Court in Sl. No.(c) above has held that "assessee co-op. society was eligible for deduction u/s 80P(2)(d) in respect of gross interest received from Surat Dist. Co-Op. Bank without adjusting interest paid to the said bank." The AR referred to the various legal decisions on the matter including the decision of the CIT(A)-4, Surat in the case of Shree Kumkotar Dudh Utpadak Sahakari Mandli Limtied vide order no. CIT(A), Surat- 4/10180/2018-19 dtd. 14.05.2019 wherein Shree Kumkotar Dudh Utpadak Sahakari Mandli had earned interest from Surat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the sake of brevity. 7. On the other hand, Ld. Counsel for the assessee defended the order passed by the Ld. CIT(A). 8. We have heard both the parties and perused the materials available on record. We note that issue under consideration is squarely covered by the judgment of Hon'ble jurisdictional High Court of Gujarat in the case of Surat Vankar Sahakari Sangh Ltd. Vs. ACIT (supra) as relied on by ld CIT(A), wherein it was held that assessee-co-operative society was eligible for deduction under section 80P(2)(d) of the Act, in respect of gross interest received from cooperative bank. Hence, we note that assessee is a co-operative society and therefore is entitled to claim deduction in respect of interest received from another ..... X X X X Extracts X X X X X X X X Extracts X X X X
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