2022 (1) TMI 596

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.... ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the Pr.CIT u/s.263 of the Income-tax Act, 1961 (hereinafter also called 'the Act') on 31-03-2021 in relation to the assessment year 2015-16. 2. Tersely, the facts of the case are that the assessee is a Cooperative Society engaged in accepting deposits from members and providing loans/advances t....

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....rieved thereby, the assessee has come up in appeal before the Tribunal. 3. We have heard both the sides through Virtual Court and perused the relevant material on record. Admittedly, the assessee is a Co-operative Society and not a Co-operative Bank. It deposited certain amounts with other Co-operative Societies on which interest income was earned. Deduction u/s.80P was claimed on such interest....

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....e question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has allowed similar deduction. In the said case, the Tribunal discussed the contrary views expressed by the Hon'ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ....

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....fore this Tribunal also. 6. Reliance of the ld. Pr. CIT on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is not relevant. The issue in that case was the eligibility of deduction u/s.80P(2)(d) of the Act on interest earned by the assessee co-operative society on investments made in co-operative banks. In that case, the assessee was engaged in th....