Tribunal grants deductions under sec.80P(2)(d) for cooperative bank interest income.

The tribunal ruled in favor of the assessee, allowing the appeals and directing the Assessing Officer to allow the deductions claimed under sec.80P(2)(d). The tribunal found the assessee eligible for sec.80P deduction in both assessment years, holding that interest income earned from investments in cooperative banks is exempt under sec.80P(2)(d) of the Act. Additionally, the tribunal accepted the assessee's argument regarding the jurisdiction of the CIT(A) to issue directions to the Assessing Officer, directing the Officer to frame necessary computations as per the law.

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Issues:
- Validity of sec.148/147 proceedings
- Sec.80P(2)(a)(i) deduction claim
- Sec.80P(2)(d) deduction claim
- CIT(A)'s jurisdiction to issue directions to the Assessing Officer

Validity of sec.148/147 proceedings:
The assessee challenged the validity of sec.148/147 proceedings, which was not pressed during the hearing. The tribunal referred to a recent landmark decision by the apex court which settled the law regarding the registration of cooperative credit societies and cooperative banks. The tribunal found no reason to accept the Revenue's arguments against the assessee, thus treating it eligible for sec.80P deduction in both assessment years.

Sec.80P(2)(a)(i) deduction claim:
The assessee raised a claim for sec.80P(2)(a)(i) deduction. The tribunal considered the argument that the assessee derived interest income from deposits made in cooperative banks. Referring to a previous decision by a coordinate bench, the tribunal held that interest income earned by the appellant society on investments made with cooperative banks, which are also cooperative societies, is exempt under sec.80P(2)(d) of the Act. The tribunal directed the Assessing Officer to allow the deduction accordingly.

CIT(A)'s jurisdiction to issue directions to the Assessing Officer:
The issue of CIT(A)'s jurisdiction to issue directions to the Assessing Officer was also raised. The tribunal accepted the assessee's argument and directed the Assessing Officer to frame necessary computations as per the law. Consequently, the twin appeals of the assessee were allowed, and a copy of the common order was to be placed in the respective case files.

In conclusion, the tribunal addressed the issues of validity of sec.148/147 proceedings, sec.80P(2)(a)(i) deduction claim, sec.80P(2)(d) deduction claim, and CIT(A)'s jurisdiction to issue directions to the Assessing Officer. The tribunal relied on legal precedents and settled law to rule in favor of the assessee, allowing the appeals and directing the Assessing Officer to allow the deductions claimed under sec.80P(2)(d).

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