TaxTMI 
TaxTMI 
2020 (2) TMI 210
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....e appeals relates to quantification of deduction admission under section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act, 1961, therefore, I proceed to dispose of all these appeals by this consolidated order. 2. As far as ITA No.285/Ahd/2018 and 2906/Ahd/2017 are concerned, in response to the notice of hearing, none has come present on behalf of the assessee. Therefore, these appeals are heard ex parte. In the case of Balasinor Vikas Co-op Credit Society Ltd., Shri S.N. Talati has advanced arguments on behalf o the assessee. First, I take ITA No.8/Ahd/2018. 3. Brief facts of the case are that the assessee is a cooperative society engaged in the business of providing credit facilities to its members as per byelaws of the Society. On scrut....
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....this connection he submitted that only net interest income be excluded from the eligibility amount for grant of deduction. With regard to second component, he submitted that as far interest income earned from cooperative bank is concerned, this has been held as eligible for grant of deduction under section 80P(2)(d) of the Act. In this connection he made reference to earlier orders of the Tribunal on similar issue in the case of Vir Transport Operator Co-op Credit & Services Society Ltd. and Another in ITA No.2018/Ahd/2017. It reads as under: "4. With the assistance of ld.representatives, we have gone through the record carefully. It emerges out from the record that both the assessees are credit cooperative societies, which has been ente....
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.... from investment made with co-operative banks. It was submitted on behalf of the assessee that the issue is squarely covered in favour of the assessee in the case of Banaskantha District Co-operative Milk Producers Union Ltd. vs. AC1T ITA No.l090/Ahd/2015 wherein the co-ordinate bench has held in favour of assessee by making reference to the decision of the Hon'ble Gujarat High Court in the case of CIT vs. Sabarkantha District cooperative Milk Producers Union Ltd. Tax Appeal No. 473 of 2014. It was pointed out on behalf of the assessee that K.D.C.C. Bank is a co-operative bank registered under Co-operative Society Act and investment made in this bank and interest earned. This investment is eligible for deduction under s.80P(2)(d) of the....
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.... of deduction of interest income from scheduled bank under section 80P(2)(a)(i) is concerned this has been settled by the Hon'ble Jurisdictional High Court in the case of State Bank of India (supra), and the assessee is not entitled for such deduction. This proposition was not even disputed by the ld.counsel for the assessee. Only thing which requires to be done is redetermination or quantification of amount which is to be disallowed out of interest income from the scheduled bank. The ld.AO shall work out the net interest income from the deposits with scheduled bank, and thereafter exclude that amount from the computation of deduction claimed under section 80P(2)(a)(i) of the Act. As far as interest income from cooperative bank/society is c....
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.... TOTAL 298907 11. It appears that some of the interest is relatable to deposits with cooperative bank and will qualify for exemption under section 80P(2)(d). Therefore, following of my observation while dealing with the case of Balasinor Vikas Coop. Credit Society Ltd. (ITA No.8/Ahd/2018) (supra), I direct the AO to re-adjudicate the issue and only exclude net interest income from nationalised bank from computation of income admissible under section 80P(2) of the Act. The AO shall adjudicate this issue after providing due opportunity of hearing to the assessee. ITA No.285/Ahd/2018 12. As the facts emerge out from the record, in this case also assessee is a cooperative society earning income from providing credit facilit....
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.... of the Act. The ld.AO considered submissions of the assessee and made a disallowance of Rs. 6,53,250/- [Rs. 6,27,200/- plus Rs. 10,600/- being form fee income plus Rs. 15,455/- being room rent income]. This disallowance was confirmed by the ld.CIT(A). Against this addition, assessee is before the Tribunal. 13. On due consideration of the above facts and circumstances, I find that the assessee is covered by the decision of Hon'ble jurisdictional High Court in the case of State Bank of India Employees Coop Credit Ltd. (supra) wherein it has been held by that cooperative society would not be eligible under section 80P(2) of the Act for deduction of interest income earned from scheduled bank. Further, assessee has agreed to proportionate disa....