2015 (3) TMI 1249

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....n 143(3) of the Act, dt.12.10.2011 to be erroneous in so far as it was prejudicial to the interest of revenue. 2. The reason for which the CIT invoked his revisionary powers under section 263 of the Act, was that assessee had claimed deduction under section 80P(2)(d) of the Act on interest of Rs. 4,41,262 received by it on its deposits with Cooperative Banks. As per the learned CIT this claim ought not have been accepted, by the Assessing Officer. The learned CIT held that Section 80P(2)(d) could not be so liberally interpreted so as to construe a Cooperative bank also as a Cooperative Society. Though the assessee argued that M/s Kanara District Co-operative Bank, wherein it had placed its deposits was registered as a Co-operative Societ....

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....mitted that the Tribunal in the case of Bagalkot District Central Co-operative Bank Vs JCIT (ITA No.1572/Bang/2013 dated 30- 05-2014) had unequivocally held that it was not possible to exclude a Cooperative Society engaged in business of banking from being considered as a Co-operative Society, perse. As per the learned AR, though the said decision was given in the context of section 194A(3)(v) it would squarely apply here also. Reliance was also placed on judgments of Hon'ble jurisdictional High Court in the case of Tumkur Merchants's Souharda Credit Co-operative Society Vs ITO (ITA No.307(B)/2014 dated 28-10- 2014) and of a co-ordinate bench of this Tribunal in the case of Menasi Seemeya Group Gramagala Seva Sahakari Sanga Niyamitha, Sirsi....