9911796707
TMI Blog2024 (6) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-17, 2017-18 and 2018-19. 2. There is a delay of 20 days in filing these appeals. Assessee has filed a petition for condonation of delay accompanied by affidavit of the President of the assessee society stating therein the reasons for late filing of these appeals. We have perused the reasons stated in the affidavit of the President of the assessee society for late filing of these appeals. We are of the view that there is reasonable cause for belated filing of these appeals and no latches can be attributed to the assessee. Hence, we condone the delay of 20 days in late filing of these appeals and proceed to dispose off the same on merits. 3. Common issues are raised in these appeals. Hence, they were heard together and are being disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of the income earned from the co-operative banks is entitled for deduction u/s 8013 (2) (d) of the Act inasmuch as the cooperative banks are also co-operative societies as per section 2(b1) of Karnataka Co-operative Societies Act, 1959. 5. The Appellant prays for leave to add, modify, delete, or introduce additional grounds of appeal at any time before the Appeal is disposed of. 4. Brief facts of the case are as follows : Assessee is a co-operative society registered under the Karnataka Cooperative Societies Act, 1959. For the Assessment Years 2016-17, 2017-18 and 2018-19, assessee had filed return of income claiming deduction under section 80P of the Act, amounting to Rs.1,35,63924/- Rs.142,93,819/- and Rs.1,28,36,935/- res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions made before the income-tax authorities. 7. The learned DR supported the orders of the CIT(A). 8. We have heard the rival submissions and perused the material on record. For the relevant Assessment Years, assessee had received interest income from Central District Co-operative Bank which was assessed as "Income from Other Sources" under section 56 of the Act and to extent interest income assessed under the head "Income from Other Sources" was not granted deduction under section 80P of the Act. The said view of the AO which was confirmed by the CIT(A) is in conformity with the dictum laid down by the Hon'ble jurisdictional High Court in the case of PCIT Vs. Totgars Co-operative Society Ltd., reported in 395 ITR 611 (Karnataka). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perative Banks to run credit facilities by a primary agricultural credit co-operative society in the State of Karnataka. The CBDT Circular No.18/2015 dated 02.11.2015 has clarified that interest income from SLR/non-SLR investment by banking company and a cooperative society shall be chargeable under the head "profit and gains of business or profession". On identical factual situation, we find the Bangalore bench of the Tribunal in the case of M/s. Kachur Credit Co-operative Society Ltd., Vs. ITO in ITA No.478/Bang/2023 (order dated 26.09.2023), by following earlier orders of the Tribunal, had held as follows: "8. I have heard the rival submissions and perused the material on record. The solitary issue for adjudication is whether a sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 80P(2)(d) of the I.T.Act is concerned, we make it clear that interest income received out of investments with cooperative societies is to be allowed as deduction." 9. In view of the above order of the Tribunal, I restore the issue to the files of the AO to examine whether interest income received amounting to Rs.5,07,822/- from South Canara District Central Co-operative Bank Ltd., is out of compulsions and in compliance with the Karnataka State Cooperative Societies Act, 1959 and the relevant Rules. If it is so, the same interest income is to be assessed as income from business which would entail the benefit of deduction under section 80P(2)(a)(i) of the Act. With the aforesaid observation, I restore the matter to the AO. It is ordere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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