TMI Blog2024 (4) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... aim that those banks are also not cooperative societies. It is agreed that those are also the cooperative bank in terms of The Banking Regulation Act, 1949. Therefore even if it is accepted that bank interest on from cooperative banks by the assessee is not the income from the business of the assessee and therefore the claim of the assessee fails under section 80P(2)(a) of the act, but the claim is still allowable and therefore cannot be denied u/s 80P(2)(d) of the act. This issue is also covered in favour of the assessee by the decision of Kerala State Co-Operative Agricultural Rural Development Bank Ltd. [ 2023 (9) TMI 761 - SUPREME COURT ] where the deduction was allowable to the state level agricultural and rural development bank, was e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,48,348/- as claimed by the assessee while filing the Return of Income for A.Y. 2017-18. Such action of CIT (A) to deny the deduction u/s 80P is bad in law and deduction be thereby directed to be allowed. 2. On facts and circumstances, Ld. CIT (A) has erred in confirming the addition without providing proper opportunity of hearing which is against the principle of natural justice. Such addition is bad in law and erroneous in facts and liable to be deleted as the same is confirmed without providing proper opportunity of hearing. 3. The Appellant craves leave to add, alter, rescind or amend any of the above grounds of appeal. 04. Fact shows that assessee is a co-operative society primarily engaged in making suitable arrangements for prompt pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for assessment year 2014 15 and 2015 16. For both the above years the learned CIT A has decided the issue in favour of the assessee. 010. However, the learned assessing officer disallowing impugned deduction passed an assessment order on 30 December 2019. 011. Assessee preferred an appeal before the learned CIT A. He passed an order on 16/8/2023 holding that honourable Supreme Court in Maviyelli cooperative bank has held that the profits attributable to the non-member are not eligible for deduction under section 80P(2)(a) of the act. With respect to the deduction under section 80P(2)(d), the learned CIT A held that in the Totagars cooperative sale societies versus income tax officer in 188 taxmann.com 282 Supreme Court has held that deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal of the assessee. Therefore, assessee is in appeal. 014. The only issue in both these appeal is whether the assessee is entitled to deduction of interest income received from cooperative bank under provisions of section 80P(2)(a) of the act or 80P(2)(d) of the act or not. 015. Before us, the assessee has filed detailed paper book containing 368 pages for assessment year 2013 14 and 278 pages for assessment year 2017 18. Assessee was heard. 016. Learned Departmental representative supported the orders of the lower authorities. 017. We have carefully considered the rival contention and perused the orders of the learned lower authorities. The only issue in this appeal is whether the assessee Indian oil employees welfare cooperative so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of profits and gains of business attributable to the activities of the society. Therefore the deduction under section 80P(2)(a) of the act is denied. However, we find that if the assessee is a co-operative society, then according to subsection 2 (d) in respect of income earned by way of interest or dividends received by the cooperative society from its investment with any other cooperative society, then the whole of such income is deductible. According to the provisions of subsection (4), the provision of section 80 P shall not apply in relation to any cooperative bank or any other specified cooperative society. That means according to this provisions the deduction is not allowable to these entities i.e. Cooperative banks. Assessee is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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