TMI Blog2023 (8) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... est income from surplus of deposit lying with the said banks and interest earned was to be utilized for meeting the sole object of the assessee i.e. to construct the residential flat. These facts have not been controverted or disputed by the ld PCIT in any manner. Therefore, the assessee is a housing cooperative society and not cooperative bank. In the case of PCIT Vs. Totagars Co-operative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] held that for the purpose of section 80P(2)(d) a co-operative bank should be considered by a cooperative society and interest earned by cooperative society from cooperative bank would necessarily be deductible u/s 80P(1) of the Act. AO was right in allowing claim of assessee u/s 80P(2)(d) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntary principle of contemporary jurisprudence. 3. The ld counsel of the assessee submitted that the impugned revisionary order passed by the ld PCIT, Delhi u/s 263 of the Income Tax Act, 1961 (for short the Act) dated 25.02.2022 for AY 2017-18 is bad in law and under the facts and circumstances of the case. He further, submitted that the ld PCIT has erred on facts and in law in invoking the provisions Section 263 of the Act which is not applicable to the facts of the case. The ld counsel vehemently submitted that the ld PCIT has erred on facts and in law in directing the AO to disallow the exemption of interest income of Rs. 35,89,839/- earned by the appellant from the funds kept with Delhi State Cooperative Bank Ltd. The ld counsel sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He further submitted that even on merit the AO was right in allowing claim of the assessee as the appellant has filed return of income where deduction u/s 80P of the Act was claimed by the appellant against the interest income received from deposit with Delhi Cooperative Bank and also exemption against agricultural income and other income. The ld counsel of assessee further drawing our attention to relevant assessment order submitted that the AO has rightly appreciated the factual matrix of the Act therefore, allowed claimed of the assessee which is quite correct and sustainable, therefore, as the assessment order cannot be alleged as erroneous and prejudicial to the interest of the revenue. 7. On careful consideration of the above submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the purpose of section 80P(2)(d) a co-operative bank should be considered by a cooperative society and interest earned by cooperative society from cooperative bank would necessarily be deductible u/s 80P(1) of the Act. 10. Similar view was taken by the coordinate bench of Rajkot in case of Surendar Nagar District Co-operative Milk Producer Union Ltd. v. Dy. CIT [2019] 111 taxmann.com 69/179 ITD 690 (Rajkot Tribunal) held the assessee co-operative society could not claim benefit under section 80P(2)(d) in respect of interest earned by it from deposits made with nationalized/private banks, however, the said benefit was available in respect of interest earned and on deposits made with co-operative bank. 11. In view of the above, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
