TaxTMI 
TaxTMI 
2018 (4) TMI 1854
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....n respect of interest earned by the assessee society from cooperative banks. 2. During hearing, at the outset, the ld. counsel for the assessee Shri Deepak Tikekar & Shri R.B. Prabhavalkar claimed that the impugned issue is covered by the decision of the Tribunal in the case of Income Tax Officer vs M/s Presidency Cooperative Housing Society Ltd., for Assessment Year 2012-13, order dated 06/03/2018 (ITA No.4058/Mum/2017). This factual matrix was not controverted by the Ld. DR, Shri Saurabh Kumr Rai. However, the Ld. DR defended the disallowance made by the Ld. Commissioner of Income Tax (Appeal). 2.1. We have considered the rival submissions and perused the material available on record. In view of the above, we are reproducing hereund....
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....10) of Maharashtra Co-operative Society Act, 1960, Co-operative Bank means a society which is doing the business of banking as defined in section 5(l)(b) of the Banking Companies Act, 1949. Hence, it is apparent from the above that the appellant being a Co-operative society could not be said to be a cooperative bank so as to deny it the benefit of provision of sections 80P as provided in sections 80P(4), where as a cooperative Bank is to be treated as a co-operative Society for the purpose of allowing deduction as per section 80P(2)(d). 5.8 The Hon'ble Bombay High court as Goa, in the case of M/s. The Quepem Urban Co-operative Credit Society ltd., Vs ACIT Circle-1, Margoa in Tax Appeals No. 22, 23, & 24 of 2015 has examined the....
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....lk producers Union Limited Vs CIT in ITA No. 2613/Ahd/@012 it was held by Hon'ble Ahmedabad Tribunal that the only requirement for claiming deduction under sections 80P(2)(d) was that the income should be received from the investments made in Cooperative Society and Co-operative Banks. 5.10 Hon'ble ITAT B Bench Mumbai's in the case of The NutanLaxmi Chs Ltd, Mumbai vs Assessee decided on 24 August, 2016 is held that. "Thus it is amply clear that a cooperative society can only avail deduction u/s 80P(2)(d)(i) in respect of its income assessable as business income and not as income from other sources if it carries on business of the banking or providing credit facilities to its members and has income assessable under the ....
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....circumstances we are of the considered view that the assessee is entitled to the deduction of Rs. 14,88,107/- in respect of interest received/derived by it on deposits with coop, banks and therefore the appeal of the assessee is allowed by reversing the order of the CTT(A). The AO is directed accordingly ". 5.12 In the ACIT vs. M/s. Jawala Cooperative Urban Thrift & Credit Society Ltd., - it was held that "We have heard rival parties and have gone through the material placed on record. We find that total income earned by the assessee included income on fixed deposits placed with Bombay Mercantile Bank, interest income from a scheduled bank and dividend income from Delhi Cooperative Bank. From the certificate as placed at p....
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....ces, we do not find any infirmity in the order of Ld. CIT(A). 10. In view of above, appeal filed by revenue is dismissed." 5.13 I have considered the assessment order and written submission of the appellant and found that the AO has disallowed claim of deduction of interest income of Rs. 42,57,3487- from Co-operative Bank u/s 80P(2)(d) of the Act as Co-operative bank is not a Co-operative Society. I find force in the arguments of the appellant and draw strength from various judicial pronouncements of the jurisdiction at ITAT like The Nutan Laxmi Chs Ltd, Mumbai vs Assessee decided on 24 August, 2016, Lands End Cooperative Housing Society Ltd vs. I.T.O. I.T.A. No. 3566/Mum/2014 (ITAT) dated 15- 01-2016 and ACIT vs. M/s. Jawala Coope....
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.... Ld. Assessing Officer observed that the assessee showed total receipt of Rs. 22,21,52,042/- by way of interest including interest from deposits in MDC Co-operative bank amounting to Rs. 57,22,046/-. The Ld. Assessing Officer further observed that the assessee claimed deduction of Rs. 4,45,67,962/- u/s 80P(2)(a)(i) and Rs. 61,75,706/- u/s 80P(2)(d) of the Act. As such the assessee claimed total deduction of Rs. 5,07,43,668/- u/s 80P of the Act, which was denied by the Ld. Assessing Officer. On appeal, before the Ld. Commissioner of Income Tax (Appeal), the view taken in the assessment order was affirmed by Ld. Commissioner of Income Tax (Appeal) so far as deduction u/s 80P(2)(d) to the tune of Rs. 61,75,706/-, which is under challenge....