TaxTMI 
TaxTMI 
2014 (9) TMI 1022
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....rs. It filed its return of income on 17-08-2010 declaring total income of NIL. During the course of assessment proceedings the Assessing Officer noted that the assessee credit cooperative society is registered under Maharashtra Cooperative Societies Act, 1960. Its main object is to provide credit facilities to its members. During the impugned assessment year, the society has earned interest income from its investment made with the Sindhudurg Central Cooperative Bank amounting to Rs. 31,77,452/-, the details of which are as under : Sr.No. Interest earned upon Amount (Rs.) 1 Investments out of Statutory Reserve Fund 29,43,097/- 2 Fixed & Recurring 1,79,737/- 3 Savings Bank Account 54,618/- T....
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....ks are governed by the provisions of Banking Regulation Act, 1949 in addition to the provisions of Maharashtra Cooperative Societies Act, 1960. The above fact according to the AO makes both the entities distint from each other. Further, after insertion of section 80P(4) by the Finance Act, 2006 w.e.f.,01-04-2007, the cooperative banks have been deprived of the benefit of 80P whereas cooperative societies are enjoying the benefit of said section. The Assessing Officer after analysing the provisions of Banking Regulation Act etc., held that the cooperative banks carry on the banking business which normally includes all the activities of a banking business and that too with the public at large whereas the cooperative societies carry on the bus....
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....uction u/s 80P(2)(a)(i) in respect of this income. 3] The learned CIT(A) failed to appreciate that the assessee was a credit cooperative society engaged in the business of providing credit facility to its members and hence, the investments made in deposits/ saving bank account and shares of Sindhudurg Central Co-operative Bank Ltd. were made in the course of the assessee's business and thus, there was no reason to deny the deduction u/s 80P(2)(a)(i) in respect of the income derived from the above investments. 4] Without prejudice to the above grounds, the assessee submits that Sindhudurg Central Co-op. Bank Ltd. was registered under the Maharashtra Co-op. Societies Act, 1960 and hence, the income derived by way of interest and div....
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....half of the assessee. We have also considered the various decisions cited before us. The Ist dispute in the grounds of appeal is regarding the allowability of deduction u/s.80P(2)(d) in respect of interest income of Rs. 31,77,452/- and dividend income of Rs. 5,41,667/- received by the assessee cooperative society on investment made in deposits/savings accounts and shares of Sindhudurg Central Cooperative Bank. According to the Assessing Officer the deduction is allowable u/s.80P(2)(d) in case of a cooperative society for receiving any interest or dividend income from any other cooperative society. Since the same has been received from a cooperative bank which is distinct from a cooperative society, therefore, the assessee is not entit....
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....as the amount of interest received on the deposit with Aurangabad District Central Co-operative Bank is concerned the Assessing Officer has not properly appreciated the provisions of law. Sec. 80P(2)(d) reads as under: 80P(1): Where, in the case of an assessee being a cooperative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in subsection (2), in computing the total income of the assessee. 80P(2): The sums referred to in sub-section (1) shall be the following, namely: (a) ........... (b) ........... (c) 2(d): In respect of any income by way of interest or dividends derived by the ....