9911796707
TMI Blog2024 (11) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... as raised the following grounds of appeal :- "1. The Ld. AO has erred in (CIT-A erred in confirming) making the disallowance of claim of Rs. 38,19,685/- u/s 80P(2)(a)(i)/80P(2)(d) of the IT Act. 2. The Ld. AO and Ld. CIT-A ought to have appreciated the fact that interest income earned form nationalized bank also qualifies for the deduction u/s 80P of the IT Act. 3. The appellant craves its right to add to or alter the Grounds of Appeal at any time before or during the course of hearing of the case." 4. Briefly stated, the facts of the case are that the assessee is a Cooperative Society engaged in banking business among its members. It registered under Co-operative Societies Act. However, it does not possess any license from Reserve Bank of India. For AY 2018-19, the assessee filed its return of income electronically on 30.10.2018 declaring total income at Rs. Nil. Subsequently, the case was selected for a complete scrutiny under the E-assessment Scheme, 2019 on the following two issues-(i) Investments/Advances/Loans; and (ii) Deduction from total income under Chapter VI-A. Statutory notice(s) u/s 143(2) and 142(1) of the Income Tax Act, 1961 (the "Act") were issued and duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the seven Cooperative/ Scheduled banks listed above. After considering the written submissions and various judicial precedents on the impugned issue relied upon by the assessee, the Ld. CIT(A) arrived at the conclusion that the interest earned by the assessee from other Co-operative banks/Societies is deductible u/s 80P(2)(d) of the Act, however, the interest income from investments made in other Commercial banks which are not Co-operative banks are not eligible for claim of deduction u/s 80P(2)(d) of the Act. He, accordingly directed the Ld. AO to allow deduction of Rs. 7,62,162/- u/s 80P(2)(d) of the Act being interest earned from Co-operative banks and sustained the disallowance of Rs. 38,19,685/- being interest earned from Commercial banks. The relevant observations and findings of the Ld. CIT(A) are reproduced below : "7. I have gone through the assessment order and written submissions submitted by the AR of the appellant. Ground no.1 is relating to disallowance of interest earned by the appellant which is a Cooperative Society which was claimed exempt u/s. 80P(2)(d) of the Act. As seen from the assessment order, the appellant had received total interest of Rs. 45,81,847 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide financial assistance to the society (3) the State Government] (b) in the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to - (i) a federal co-operative society, being a society engaged in the business of supplying milk, oilseeds, fruits, or vegetables, as the case may be or (ii) the Government or a local authority, or (iii) a Government company as defined in section 617 of the Companies Act. 1956 (1 of 1956), or a corporation established by or under a Central State or Provincial Act (being a company or corporation engaged in supplying milk, oilseeds fruits or vegetables, as the case may be, to the public). the whole of the amount of profits and gains of such business (c) in the case of a co-operative society engaged in activities other than those specified in clause (a) or clause (b) (either independently of or in addition to all or any of the activities so specified), so much of its profits and gains attributable to such activities as (does not exceed- (i) where such co-operative society is a consumers' co-operative society, one hundred thousand rupees and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Pune Trib.). In this decision, Hon'ble ITAT has distinguished the facts of the case of Totgar Co-operative Sale Society Ltd. and concluded that the co- operative credit societies are eligible for deduction u/s 80P(2)(d) of the Act." 6. Dissatisfied, the assessee is in appeal before the Tribunal challenging the decision of Ld. CIT(A)/NFAC and all the grounds of appeal relate thereto. 7. The Ld. AR submitted that the impugned issue is covered in favour of the assessee by various decisions passed by the Co-ordinate Bench of the Pune Tribunal allowing the similar claim of deduction u/s 80P(2)(a)(i)/ 80P(2)(d) of the Act. He placed reliance on the decision of the Pune Bench of the Tribunal in the case of Sharad Nagari Sahakari Patsanstha Maryadit Vs. ITO in ITA No. 335/PUN/2024, dated 16.04.2024 wherein the Tribunal decided the impugned issue in favour of the assessee in similar set of facts. 8. The Ld. DR fairly conceded to the above submission of the Ld. AR. 9. We have heard the Ld. Representative of the parties and perused the records. We find that the impugned issue is no more res-integra by virtue of catena of decisions passed by the Co-ordinate Benches of the Tribunal and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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