TaxTMI 
TaxTMI 
2017 (3) TMI 1746
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....dit co-operative soceity." 2. "On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing deduction u/s.80P(2)(a)(i) without considerating insertion of sec. 80P(4) and sub clause (viia) to sec.2(24) vide Finance Act 2006 w.e.f. 1.04.2007." 3. "On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the facts that the assessee falls under the category of "Primary Cooperative Bank' as per the definition in part V of the Banking Regulation Act, 1949." 4. "On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in applying the decision of Gujarat High Court in the case of Jafar Momin Vikas Co-op. Credit Society Ltd (ITA No.442, 443 and 863 of 2013 dt.15.01.201, which is based on a patently erroneous reading of the Board's clarification dated 09.05.2007." 5. "On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating that in para 4 of the letter No. 133 of 2007 dated 09.05.2007, CBDT has not given any such exclusion as has been interpreted by Hon'ble Gujrat High Court in the case of Jafari Momin Vikas Co-op. Credit Society Ltd a....
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....other than a primary agricultural credit society or a primary cooperative agricultural and rural development bank. Ld. DR further submitted that since the assessee fulfills the condition laid down u/s 56(c)(ccv) of part V of the Banking Regulation Act, 1949 for being a cooperative bank. Therefore, the assessee was rightly considered as co-operative bank. It was further submitted by Ld. DR that under sub-section (4) of section 80P of I.T. Act, 1961, the deduction u/s 80P(2)(a)(i) of I.T. Act would not be allowable to the assessee and in this context relied upon the orders of AO. 8. On the other hand Ld. AR appearing on behalf of the assessee relied upon the orders passed by the CIT(A) while dealing with this ground. 9. We have heard the counsels for both the parties and we have also perused the material placed on record as well as the orders passed by the revenue authorities. After considering the facts of the case, we find that Ld. CIT(A) while dealing with the said ground has categorically mentioned the facts of the case and had given the findings in para no. 3.2.14 in its order after detailed discussion in para no. 3.1.6 to 3.2.13 and the same is reproduced below:- "3.2.14. T....
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....e basis of the remand report. Moreover, there is no reason for us to deviate from the findings recorded by the learned CIT (A). Therefore, we are of the considered view that the findings recoded by the learned CIT (A) are judicious and are well reasoned. Accordingly, we uphold the same. Resultantly, this ground raised by the Revenue stands dismissed. Ground NO. 8 10. This ground is general in nature and requires no specific adjudication. 11. In the net result, the appeal filed by the revenue is dismissed. ITA No. 5819/Mum/14 (AY 2010-11) 12. Now coming to ITA No. 5819/Mum/2014 filed by the assessee for A.Y 2010-11. The grounds of appeal are mentioned herein below:- 1. On the facts and in the circumstances of the case and in law the Ld. CIT (A) has erred in holding part of the interest income received by the appellant as 'Income From Other Sources' and not Business Income. 2. On the facts and in the circumstances of the case and in law the Ld. CIT (A) has erred in holding that Co. Op, Banks are not part of Co. Op. Societies and hence exemption available u/s 80P(2)(d) is not applicable in case of the appellant. 3. On the facts and in the circumstances of the case a....
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....granting of loans to the members. The reserve funds has to be invested only for the highly restricted purpose as mentioned in the bye laws on page 29 that reads as under:- "The utilization and investment of the funds including Reserve funds shall be subject to the provisions section 66 of Maharashtra State Co-operative Societies Act 1960 read with rule 54 provided in Maharashtra State Cooperative Societies Rules, 1961 as provided in Bye-law No. G 1.2 and 1.3." 4.1.2 Therefore, the statutory reserve funds of the assessee are its surplus funds that has been invested in the banks in F.Ds. Further, as held by Supreme Court in case of The Totgars Co-operative Sale Society Ltd. (2010) 229 CTR (SC)209. interest received by a co-operative society from investment of its surplus funds is assessable under the head "income from other sources" and deduction u/s 80P is not available in respect of such interest and dividend income. The disallowance of deduction u/s 80P is therefore upheld to this extent. After analyzing the aforementioned order, we find that Ld. CIT(A) has relied upon the judgment of Hon'ble Supreme Court in the case of The Totgars Co-operative Sale Society Ltd. (2010) 229 C....