TaxTMI 
TaxTMI 
2019 (4) TMI 1933
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee assailing the order of the CIT(A) has raised before us the following grounds of appeal: "The Appellant is a Co-operative Housing Society, primarily engaged in providing various services to its members for upkeep and maintenance of the society and collecting charges from members for the same. During the relevant previous year, appellant received Rs. 40,720/- as Interest from Shamrao Vithal Co-operative Bank. The Learned Commissioner of Income Tax (Appeals)-46 has erred in holding that appellant was not entitled to benefit of exemption uls 80P (2) (d).The order passed, disallowing claim of the appellant u/s.80P(2)(d) of the Income Tax Act. 1961 of Rs. 40,720/-is ab-initio void, same having been passed in clear cont....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me accruing the assessee society did not qualify for deduction under Sec.80P. As a result, the A.O declined the assesses claim of deduction under Sec.80P on the interest on FDRs and brought the same to tax under the head "Income from other sources". 4. Aggrieved, the assessee carried the matter in appeal before the CIT(A). However, the CIT(A) not being persuaded to subscribe to the contentions advanced by the assessee dismissed the appeal. 5. The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. The ld. Authorized Representative (for short "A.R‟) for the assessee submitted that the lower authorities had erred in declining the assesses claim of deduction under Sec.80P(2)(d) insofar ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....80P(2)(d), which reads as under : "80P(2)(d) (1). Where in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2). The sums referred to in sub-section (1) shall be the following, namely :- (a)............................................................................................ (b)............................................................................................ (c).............................................................
X X X X Extracts X X X X
X X X X Extracts X X X X
....r co-operative society, the claim of deduction under the Sec. 80P(2)(d) would be duly available. We may herein observe that the term "Co-operative society‟ had been defined under Sec. 2(19) of the I-T Act, as under:- "(19) "Co-operative society" means a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state for the registration of cooperative societies;" As observed hereinabove, though a co-operative bank pursuant to the insertion of sub-section (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the I-T Act, however, as a co-operative bank continues to be a co-operative society registered under th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....kes it clear beyond any scope of doubt, that the purpose behind enactment of sub-section (4) of Sec. 80P was to provide that the co-operative banks which are functioning at par with other banks would no more be entitled for claim of deduction under Sec. 80P(4) of the I-T Act. We are of the considered view that the reliance placed by the lower authorities on the judgment of the Hon‟ble Supreme Court in the case of Totgars Co-operative Sale Society Ltd. vs. ITO (2010) 322 ITR 283(S.C) being distinguishable on facts, had thus wrongly been relied upon by them. In fact, the adjudication by the Hon‟ble Apex Court in the aforesaid case was in context of Sec. 80P(2)(a)(i) and not on the entitlement of a co-operative society towards dedu....