TMI Blog2023 (2) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... A.R. For the Revenue : Shri A.N. Bhalekar, D.R. ORDER PER : KULDIP SINGH, JUDICIAL MEMBER: Since common question of law and facts have been raised in both the inter-connected appeals, the same are being disposed of by way of composite order to avoid repetition of discussion. 2. The appellant, M/s. Ganga Heritage Co-operative Housing Society Ltd. (hereinafter referred to as the assessee ) by filing the present appeals, sought to set aside the impugned orders even dated 04.10.2022 passed by the National Faceless Appeal Centre(NFAC) [Commissioner of Income Tax (Appeals), Delhi] (hereinafter referred to as CIT(A)] qua the assessment years 2014-15 2015- 16 on identically worded grounds except the difference in amount of addition inter-alia that :- 1. The ld. CIT (A) NFAC erred in not granting deduction under section 80P(2(d)) as claimed by the appellant on interest income from co-operative bank. 2. The appellant is a co-operative housing society. During the year under appeal the society had claimed deduction of Rs.4,13,957/- Rs.5,37,862/- for A.Y. 2014-15 2015-16 respectively being interest from co-operative banks. The appellant society has claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case of Palm Court M Premises Co-operative Society Ltd. in ITA No.561/M/2021 order dated 09.09.2022 by the co-ordinate Bench of the Tribunal in the light of the decision rendered by the Hon ble Supreme Court in case of Totgars Co-operative Sale Society Ltd. (supra). 7. Undisputedly assessee society has invested its surplus fund with co-operative banks and earned the interest income at Rs.4,13,957/- Rs.5,37,862/- for A.Y. 2014-15 2015-16 respectively. 8. The co-ordinate Bench of the Tribunal in case of Palm Court M Premises Co-operative Society Ltd. (supra) decided the issue in favour of the assessee by distinguishing the judgment rendered by Hon ble Supreme Court in case of Totgar s Co-operative Sale Society Ltd. (supra) and by discussing the decision rendered by Hon ble Bombay High Court and Hon ble Gujarat High Court wherein it is held that interest income earned by the Co-operative Society on its investment made with co-operative bank would be eligible for claim of deduction under section 80P(2)(d) of the Act by returning following findings: 8. We have given a thoughtful consideration to the contentions advanced by the ld. Authorized representatives for both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudication of the scope and gamut of sub-section (4) of Sec. 80P as had been made available on the statute, vide the Finance Act 2006, with effect from 01.04.2007. On a perusal of the order passed by the Pr. CIT under Sec. 263 of the Act, we find, that he was of the view that pursuant to insertion of sub-section (4) of Sec. 80P, the assessee would no more be entitled for claim of deduction under Sec. 80P(2)(d) in respect of the interest income that was earned on the amounts which were parked as investments/deposits with co-operative banks, other than a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank. Observing, that the co-operative banks from where the assessee was in receipt of interest income were not co-operative societies, the Pr. CIT was of the view that the interest income earned on such investments/deposits would not be eligible for deduction under Sec. 80P(2)(d) of the Act. 7. After necessary deliberations, we are unable to persuade ourselves to be in agreement with the view taken by the Pr. CIT. Before proceeding any further, we may herein reproduce the relevant extract of the aforesaid statutory provision, viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duly available. We find that the term cooperative society ‟ had been defined under Sec. 2(19) of the Act, as under:- (19) Co-operative society means a cooperative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state for the registration of co-operative societies; We are of the considered view, that though the co-operative banks pursuant to the insertion of subsection (4) to Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but as a co-operative bank continues to be a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies, therefore, the interest income derived by a cooperative society from its investments held with a co-operative bank would be entitled for claim of deduction under Sec.80P(2)(d) of the Act. 8. We shall now advert to the judicial pronouncements that have been relied upon by the ld. A.R. We find that the issue that a cooperative society would be entitled for claim of deduction unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon ble High Court of Gujarat in the case of State Bank Of India Vs. CIT (2016) 389 ITR 578 (Guj), had observed, that the interest income earned by a co-operative society on its investments held with a cooperative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. We find that as held by the Hon'ble High Court of Bombay in the case of K. Subramanian and Anr. Vs. Siemens India Ltd. and Anr (1985) 156 ITR 11 (Bom), where there is a conflict between the decisions of non-jurisdictional High Court s, then a view which is in favour of the assessee is to be preferred as against that taken against him. Accordingly, taking support from the aforesaid judicial pronouncement of the Hon ble High Court of jurisdiction, we respectfully follow the view taken by the Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon ble High Court of Gujarat in the case of State Bank Of India Vs. CIT (2016) 389 ITR 578 (Guj), wherein it was observed that the interest income earned by a cooperative socie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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