9911796707
TMI Blog2024 (1) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... J M: These appeals have been preferred by the Assessee against the orders dated 28.06.2023, 20.07.2023, 28.06.2023 and 30.06.2023 passed by National Faceless Appeal Centre ( NFAC )/ the learned Commissioner of Income Tax (Appeals) (in short ld. Commissioner for short) u/s. 250 of the Income Tax Act, 1961 (in short the Act'), pertaining to the Assessment Years ( A.Y. for short) 2012-13, 2015-16, 2017-18 2018-19. 2. As the facts and issues involved in all these appeals under consideration are exactly similar except variation in figures of amount, therefore, for the sake of brevity, the same were heard together and are being disposed of by this consolidated order and ITA No. 2704/Mum/2023 as a lead case. ITA No. 2704/Mum/2023 3. In this case, the Assessee by filing its return of income, has claimed the deduction of Rs. 3,63,255/- u/s. 80P of the Act, therefore, the AO show caused the Assessee as to why the claim of deduction of Rs. 3,63,255/- u/s. 80P of the Act should not be disallowed in view of the provision of section 80P(4) of the Act. The Assessee by filing its reply dated 15.11.2019 mainly claimed that the Assessee is not a Co- operative Bank carryin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with agricultural activities whereas coming to co-operative bank Cand primary credit societies, those societies are intended to engage in the transaction of banking business. The only common factor is that all such societies are co-operative societies, 11. The Hon'ble Madras High Court in the case of SBI Staff Co-operative Society Ltd. V. ITO(1998) 144 CTR (Mad) 240:(1998) 234 ITR 104(Mad ) to justify that Patsanstha (Credit institution) is a co-operative society engaged in the business of banking and therefore, the investments in the said Patsanstha (Credit society) is covered by the provision of section 11(5)(iii) of the Act (3) (2). 12. There are many such judicial pronouncements in support of the same. Thus, it is clear in the case of the assessee that it fulfills the condition laid down u/s 56(c)(ccv) part V of the Banking Regulation Act, 1949. (Cu) Primary co-operative bank means a co-operative society, other than primary agricultural credit society whose: (1) The primary object or principal business of which is the transaction of banking business; (as in the case of assessee) (2) The paid up share capital and reserves of which are not les ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made by him and disallowed the same. 6. The Assessee being aggrieved is in appeal before us. 7. Heard the rival submissions and perused the materials available on record. The Assessee is in appeal against the denial of deduction of 3,63,255/- as claimed qua income earned as interest/dividend from co-operative bank. The provisions of section 80P(2)(d) of the Act reflects that if any income by way of interest or dividend derived by the Co-operative Society from its investment with any other Co-operative Society, then the whole of such income shall be deducted in computing the total income of the Assessee. Meaning thereby income if any by way of interest or dividend earned from investment with any other Co-operative Society, then such amount of interest or dividend earned shall be deductible in computing the total income of the Assessee. 7.1 The provisions of section 80P(2)(d) of the Act reflects Co-operative Society but not the Co-Operative Bank therefore question emerge whether income earned by way of interest or dividend from the investments made with any other Co- operative Bank is allowable as deduction under section 80P(2)(d) of the Act, or not . 7.2 Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1912), or under any other law for the time being in force in any State for the registration of co-operative societies; 11. In the present case, there is no dispute that the assessee is a Co-Operative Housing Society. Thus, if any income as referred to in sub-section (2) to section 80P of the Act is included in the gross total income of the assessee, the same shall be allowed as a deduction. It is pertinent to note that since the assessee is registered under the Maharashtra Co-operative Societies Act, 1960, it is required to invest or deposit its funds in one of the modes provided in section 70 of the aforesaid Act, which includes investment or deposit of funds in the District Central Co- operative Bank or the State Co-operative Bank. Accordingly, the assessee kept the deposits in Co-operative Banks registered under the Maharashtra Co-operative Societies Act and earned Interest, which was claimed as a deduction under section 80P(2)(d) of the Act. The AO denied the deduction under section 80P(2Xd) of the Act on the basis that the Co- operative Bank is covered under the provisions of section 80P(4) of the Act. We find that the Hon ble Supreme Court in Mavilayi Service Co-operat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2006, with effect from 1-4-2007, the provisions of sec. 80P would no more be applicable in relation to any co-operative bank, other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank, but however, are unable to subscribe to their view that the same shall also jeopardise the claim of deduction of a co-operative society under sec. 80P(2)(d) in respect of the interest income on their investments parked with a co-operative bank. We have given a thoughtful consideration to the issue before us and are of the considered view that as long as it is proved that the interest income is being derived by a co-operative society from its investments made with any other co-operative society, the claim of deduction under the aforesaid statutory provision, viz. sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society had been defined under sec. 2(19) of the Act, as under:- (19) Co-operative society means 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-ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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