2020 (4) TMI 711

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....to attend the hearing nor any application seeking adjournment was filed. Therefore , we are disposing off the appeal after hearing the Ld. D.R. and going through the facts of the case. 3. The only issue raised by the assessee is against the order of Ld. CIT(A) confirming the order of AO wherein the AO has disallowed the claim under section 80P(2)(d) to the tune of Rs. 3,88,522/- being interest received from the co-operative bank. 4. The facts in brief are that during the course of assessment proceedings, the AO observed that assessee has earned interest of Rs. 3,88,522/- from Saraswat Co-operative Bank Ltd. and claimed the same as exempt under section 80P(2)(d) of the Act. According to the AO, the said interest is not eligible to b....

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....Ltd. Vs I.T.O. ITA No.3566/Mum/2014 Assessment Year 2009-10 order dated 15.1.2016. The operative part is reproduced as under:- "8.3 We have heard the rival submissions and perused the material on record. We find that the CIT(A) enhanced the income of the assessee by rejecting the deduction u/s 80P(2)(d) of the Act of Rs. 14,88,107/- being interest on investment with other Coop. banks by following the decision in the case of Bandra Samruddihi Co-operative Housing Society Ltd.(Supra) which was passed on the basis of the decision passed by the Hon'ble Supreme Court in the case of Totagar's Co-operative Sale Society Ltd. In the case of Totagar's Co-operative Sale Society Ltd v/s ITAT (supra) the Hon'ble Supreme Court while interpreting....

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.... of the amount of profits and gains of business attributable to any one or more of much attributes. (d)In respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income." From the close perusal of the provisions of u/s 80P(2)(a)(i) and 80P(2)(d) it is clear that the former deals with deduction in respect of profits and gain of business in case of the co-operative society carrying on business of banking or providing credit facilities to its members if the said income is assessable as income from business whereas latter provides for deduction in respect of income by way interest and dividend derived by assessee from its inves....