TaxTMI 
TaxTMI 
2019 (1) TMI 650
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....quiring land, developing the same into sites and transferring them to its Members. For Assessment Year 2014-15, the assessee filed its return of income on 11.03.2015 declaring NIL income; after claiming deduction of Rs. 2,14,13,128/- u/s. 80P(2)(d) of the Income Tax Act, 1961 (in short 'the Act'). The case was taken up for scrutiny and the assessment was concluded u/s 143(3) of the Act vide order dated 08.12.2016, wherein the assessee's income was determined at Rs. 2,14,13,128/- in view of the rejection of the assessee's claim for deduction u/s 80P(2)(d) of the Act. The Assessing Officer (AO) was of the view that the assessee was functioning on par with other commercial Banks which did not enjoy the benefit of deduction u/s 80P of the Act d....
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....y involved in extending credit facilities to its members which is in the nature of a bank transaction, treated on par with the new clause introduced in the definition of income in section 2(24)(viia) of the Act and comes under the purview of section 80P(4) wef 01.04.2007? 2. Any other grounds that may arise at the time of hearing. 5. The sum and substance of the grounds of appeal raised by the Revenue challenge the finding of the CIT(A) that the assessee is entitled to the benefit of deduction u/s 80P(2)(d) of the Act in respect of interest income earned from other co-operative societies and co-operative banks. 6. We have heard the rival submissions and carefully considered the material on record. The learned AR relied on the decision....
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....12 investments and deposits after the Supreme Court's decision against the assessee Totgar's Co-operative Sale Society Ltd. (supra), were shifted from Schedule Banks to Cooperative Bank. U/s.80P(2)(d) of the Act, income by way of interest or dividends derived by a Co-operative Society from its investments with any other Co-operative Society is entitled to deduction of the whole of such interest or dividend income. The claim of the Assessee was that Co-operative Bank is essentially a Co-operative Society and therefore deduction has to be allowed under Clause (d) of Sec.80P(2) of the Act. The Hon'ble Karnataka High Court followed the decision of the supreme Court in The Totgars Co-operative Sales Society Ltd. (supra) and held that....