TaxTMI 
TaxTMI 
TaxTMI 
2021 (5) TMI 238
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....- as per return of income filed. 2. On the facts and circumstances of the case and in law Ld. AO erred in (a) Disallowing the claim u/s 80P(2)(d) of Rs. 13,39,633/- on interest earned from investment in co-operative banks. (b) Relying on Citizen Co-operative Society Ltd's case wherein the claim of the assessee society u/s 80P(2)(a) was denied as the society was engaged in the activity of finance and was also engaged in granting loans to general public as well and hence could not be termed as co-operative society. These facts are totally different from the case of your appellant which has claimed deduction u/s 80P(2)(d)." 3. The brief facts of the case are that the assessee filed its return of income on 23.09.2015 declaring total inco....
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..../2014 for the A.Y.2009-10 dated 15.01.2016, Kaliandas Udyog Bhavan Premises Co-op. Society Ltd. Vs. ITO in ITA. No.6547/M/2017 for the A.Y. 2014-15 dated 25.04.2018, Merwanjee Cama Park Co-op Housing Society Ltd. in ITA. No.6139/M/2014 for the A.Y.2010-11 dated 27.09.2017, Sea Grean Co-operative Housing Society Ltd. in ITA. No.1343/M/2017 for the A.Y.2013-14 dated 31.03.2017 and the decision of Hon'ble Karnataka High Court in the case of Totagars Co-operative Sale Society (78 Taxmann.com 169), therefore, the claim of the assessee is liable to be allowed in the interest of justice. It is also argued that the issue has also been decided in favour of the assessee by the decision of Mumbai Bench in the case of M/s. Jai Mataji Co-operative Credi....
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....i) of the Act. Whereas in the case before us the issue is whether a co-operative society which has derived income on investment with cooperative banks is entitled to deduction u/s 80P(2)(d). The provisions of Section 80P(2)(d) of the Act provide deduction in respect of income by way of interest or dividend on investments made with other Cooperative society. For the purposes of better proper understanding of these two provisions the relevant extract of the section are reproduced below: 80P: Deduction in respect of income of co-operative Societies. 1. Where, in the case of an assesssee 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 sub....
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....t must have income of interest and dividend on investments with other Co-operative society may or may not be engaged in the banking for providing credit facilities to its members and the head under which the income is assessable is not material for the claim of deduction under this section. Now will evaluate the assessee's case in the light of the decision of the Hon'ble Supreme court. The Honble Supreme Court in the case of Totagar's Co-operative Sale Society Ltd.(Supra) held that a society has surplus funds which are invested in short term deposits where the society is engaged in the business of banking or providing credit facilities to its members in that case the said income from short term deposits shall be treated and assessed as inco....
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....Bank wo necessarily be deductable under Section 80P(I) of the Act. 8. The issue whether a Co-operative Bank is considered to be a Co-operative Society is no longer res integra. For the said issue has been decided by the ITAT itself in different cases. Moreover, the word "Co-operative Society" are the words of a large extent, and denotes a genus, whereas the word "Co-operative Bank" is a word of limited extent, which merely demarcates and identifies a particular species of the genus Co-operative Societies. Co-Operative Society can be of different nature, and can be involved in different activities; the Cooperative Society Bank is merely a variety of the Co-operative Societies. Thus the Co-operative Bank which is a species of the genus woul....