TMI Blog2024 (1) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the assessee is eligible for deduction u/s 80P(2)(d) of the Act. As relates to the decisions of Citizen Co-operative Society Ltd ( 2017 (8) TMI 536 - SUPREME COURT ), Bangalore Club ( 2013 (1) TMI 343 - SUPREME COURT ) and the decision of Totagars Co-operative Sale Society, [ 2017 (7) TMI 1049 - KARNATAKA HIGH COURT] will not be applicable in the light of decision of Hon ble Apex Court in the case of The Mavilayi Service Co-op. Bank Ltd. ( 2021 (1) TMI 488 - SUPREME COURT ) which clearly held that the deduction u/s 80P will exclude only co-operative banks, which are co-operative societies who must possess a licence from the RBI to do banking business. In fact, the interpretation taken by the Revenue appears to be on the wrong footing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance u/s 40A(9) [contribution to fund, etc.], Investment/Advances/Loans, Disallowance u/s 40A(7) [Gratuity provision] and deduction from total income under Chapter VI-A. After taking cognizance of the reply of the assessee, the Assessing Officer made addition of Rs. 1,86,285/- thereby disallowing the interest income earned from the co-operative bank and treated the same as income from other sources u/s 56 of the Act. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. AR submitted that, in the decision of Hon ble Gujarat High Court in the case of CIT Vs. Sabarkantha District Co-operative Milk Producers Union Ltd. in Tax Appeal No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... categorically held that the exemption statutes have to be interpreted strictly, and in case of ambiguity, it must be interpreted in favour of the Revenue. 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee is earning interest income from Mehsana District Co-op. Bank Ltd., which is a registered co-operative bank under Gujarat Co-operative Societies Act and is a member of the Co-operative Society; and the interest earned thereon comes under the purview of Section 80P(2)(d) of the Act as held by the Hon ble Gujarat High Court in the case of Sabarkantha Dist. Co-op. Milk Producers Union Ltd. (supra). Therefore, the assessee is eligible for deduction u/s 80P(2)(d) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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