TMI Blog2023 (12) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... t relief to the assessee in accordance with law u/s. 57 of the Act. Assessee appeal allowed. - Shri Chandra Poojari, Accountant Member And Ms. Madhumita Roy, Judicial Member For the Assessee : None. For the Revenue : Shri Nischal. B, Addl. CIT DR. ORDER PER MADHUMITA ROY, JUDICIAL MEMBER The instant appeal filed by the assessee is directed against the order dated 13.07.2023 passed by the National Faceless Appeal Centre (NFAC), Delhi arising out of the order dated 16.12.2019 passed by the ITO, Ward 3, Udupi u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for A.Y. 2017-18 whereby and whereunder the interest on investments derived by the appellant from co-operative banks has been disallowed for deduction u/s. 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Co-operative Sale Society Ltd. vs. ACIT by order dated 18.07.2023. A copy whereof has also been filed before us. Needless to mention that the order was passed by the Coordinate Bench in favour of the assessee was not been able to be controverted by the Ld.DR appearing for the revenue. Neither any judgment against the ratio laid down in the above two matters have been cited by the Ld.DR. 5. We have heard the rival submissions made by the respective parties. We have also considered the relevant materials available on record. We have further perused the judgment passed by the Coordinate Bench in case of The Totgars Cooperative Sale Society Ltd. vs. ACIT (supra). While dealing with the identical issue, the Bench was pleased to observe as follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as liability in their account. In fact this amount which is in the nature of profits and gains, was not immediately required by the assessee for lending money to its members, as there were no takers. Therefore they had deposited the money in a cooperative bank again which interest/dividend was earned.. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P(1) of the Act. In fact similar view is taken by the Andhra Pradesh High Court in the case of CIT v. Andhra Pradesh State Cooperative Bank Ltd. [2011] 336 ITR 516/200 Taxman 220/12 taxmann.com 66. 9.2 Therefore, reliance was placed by the Ld.DR on the decision of Hon ble Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the interest income earned by a cooperative society on its investments held with a cooperative bank would be eligible for claim of deduction under Sec. 80P(2)(d) of the Act. 9.4 It is directed that the interest earned by the assessee from commercial banks may be considered under the head income from other sources and relief may be granted as available to the assessee u/s 57 of the Act in accordance with law. 6. As the issue before us is identical and already been decided in favour of the assessee in the above matter as discussed in the foregoing paragraphs, respectfully relying upon the same, we hold that the investment held with the co-operative bank would be eligible for claim of deduction u/s. 80P(2)(d) of the Act and we direct the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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