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TMI Blog2025 (5) TMI 1243X X X X Extracts X X X X X X X X Extracts X X X X ..... ommon and interrelated as they pertained to the same assessee, accordingly all the appeals were heard together and are being disposed of by this consolidated order. For the sake of convenience, we first take up the ITA No.116/Kol/2025 for assessment year 2015-16 and outcome of this appeal shall apply mutatis mutandis to the interconnected appeals. 2. ITA No.116/Kol/2025 - Brief facts of the case are that the assessee is a cooperative society engaged in providing long-term credit facilities to its members for agriculture and allied activities. The assessee filed its return of income for the assessment year 2015-16 by declaring total income of Rs. Nil. The return of the assessee was processed u/s 143(1) of the Act. The case of the assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee filed an appeal before the ld. CIT(A) contending that the investments were made in compliance of the statutory requirements under the West Bengal Cooperative Societies Act 2006. It was further submitted that similar additions for the assessment years 2012-13, 2013-14 & 2014-15 were deleted by the ld. CIT(A) in earlier order dated 30.09.2019, 03.02.2020 & 03.02.2020 respectively. However, the contention of the assessee was not considered by the ld. CIT(A) and the ld. CIT(A) sustained the addition so made by the Assessing Officer. 4. Aggrieved by the above order, the assessee has filed the present appeal before this Tribunal. At the time of hearing, the ld. AR argued that the assessee being a cooperative credit society which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter no. 1712 (Opn)/958 dated 11.9.91 also advised the PLDBs to start Deposit Mobilisation Scheme after observing certain specified norms. 3. The PLDBs should raise more than 70% of the total deposits as Savings Deposits. and 70% of the total Deposits are to be kept by the PLDBs in the NSC, Fixed Deposits, Cash Certificate of the Banks etc. and one-third of the deposits so raised are to be kept with with the Apex Bank as and when the rates of Interest on such deposits profitable to the P.LDBs are declared by the W. B. State Co-op. Agriculture and Rural Development Bank. The latter bank was earlier advised not to adjust its dues against Deposits accounts of the PLDBs in any case. 4. In no case the PLDBs should divert the funds raised thro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and assessee received deposit from its members as margin money in respect of loan facility sanction to them. Besides that assessee also received deposit from its members in their respective savings bank account and in compliance with the order issued by Registry of Co-operative Society, Govt. of West Bengal, the present assessee is also required to deposit 70% of such deposits amount in NSC, fixed deposit/certificate of bank and in furtherance of such direction assessee had deposited those funds with SBI and generated interest income. However, the ld. AO while framing the assessment with a view to bring into tax such SBI interest earned by the assessee as income from other sources rather than treating it as business income in the hands of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, the ld. DR relied on the orders of the Assessing Officer as well as the ld. CIT(A). He submitted that investments in the fixed deposits were not in the course of providing credit facilities to its members and hence the same do not qualify for deduction u/s 80P(2)(a)(i) of the Act. 6. After hearing rival contentions and perusing the materials available on record, we find that it is undisputed fact that the assessee is a registered cooperative society and engaged in providing credit facilities to its members and has earned interest income on fixed deposits made with various banks and institutions. It is also not in dispute that the investments were made pursuant to the mandatory directions issued by Registrar of Cooperative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered view that the Assessing Officer as well as the ld. CIT(A) were not justified in denying the benefit of deduction u/s 80P(2)(a)(i) of the Act to the assessee. We, therefore, set aside the order of the ld. CIT(A) and direct the Assessing Officer to delete the said addition of Rs. 1,43,64,931/- made on account of interest income. 7. In terms of the above, ITA No.116/Kol/2025 filed by the assessee is allowed. 8. ITA No.117 to 121/Kol/2025 -Since the facts and issues involved in all the captioned appeals are identical, therefore, our findings/directions given above in ITA No.116/Kol/2025 will mutatis mutandis apply to the all remaining other appeals also i.e. I.T.A. Nos.117 to 121/Kol/2025. Hence, I.T.A. Nos.117 to 121/Kol/2024 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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