TMI Blog2021 (3) TMI 1425X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) TMI 1100 - KARNATAKA HIGH COURT ] has held that for the purpose of section 80P(2)(d) of the Act a cooperative bank should be considered as cooperative society. Similar view has been taken by the Hon'ble Gujarat High court in the case of Surat Vankar Sahakari Sangh Ltd. [ 2016 (7) TMI 1217 - GUJARAT HIGH COURT ] On the same issue in the case of PCIT vs. Totagars Co-operative Sale Society [ 2017 (7) TMI 1049 - KARNATAKA HIGH COURT ] has taken a contrary view holding that interest income earned from deposit with the cooperative bank does not qualify for deduction under section 80P(2)(d). It would be relevant to mention here that the Hon'ble High Court while rendering later judgement has not considered the earlier decision rende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .80P(2)(d) of the Act in the facts and circumstances of the case. 3. We have heard rival submissions and perused the materials available on record. At the outset, both the parties before us fairly agreed that this issue is already covered in favour of the assessee by the order of this Tribunal for the A.Y.2015-16 in ITA No.1880/Mum/2019 dated 29/10/2020. We find that assessee is a co-operative housing society. During the period relevant to year under appeal, the assessee received interest income of Rs.1,86,42,143/- being interest on savings account, term deposits and fixed deposits with Co-operative banks, sale of scrap, miscellaneous income, dividend and interest free tax free bonds. We find that assessee filed its return of income for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presentative submitted that the provisions of section 80P(2)(d) mandates that it is only the interest or dividend derived by co-operative society from investment with other cooperative society that would be exempted. In the present case, the assessee has made investment with cooperative bank. Hence, benefit of deduction under section 80P(2)(d) of the Act would not be available to the assessee. 4. We have heard the submissions made by learned Departmental Representative and have examined the orders of lower authorities. The only issue in present appeal by the Department is against allowing deduction under section 80P(2)(d) of the Act. The issue gives rise to the question: Whether a Cooperative Bank should be considered as cooperative soci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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