TaxTMI 
TaxTMI 
2022 (3) TMI 123
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....ned Assessing Officer has erred in disallowing the deduction claimed by the cooperative society of Z. 60,91,244/- under section 80P(2)(a)(i) and the learned First Appellate Authority has erred in confirming the orders of the assessing authority. 2. The learned assessing officer has erred in treating the sum of Z.53,58,651/-being the interest and dividend received from SCDCC Bank as income from other sources, which the appellant had included under income from business. The assessing officer has erred in not granting the benefit of deduction u/s 80P(2)(d) for the interest received from co-operative banks 3. The assessee society is registered under the Cooperative Societies Act, 1959 and complied with The Karnataka Co-operati....
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....does not lose the character of a Cooperative Society. The recent judgement of Hon'ble ITAT Delhi Bench 'E' in the case of Mantola Co-operative Thrift & Credit Society Ltd. supports the contention of the appellant. 5. We further submit that, as per the provisions of section 80(P)(2)(a)(i), in the case of a co-operative society, the whole of the amount of profits and gains attributable to the business of providing credit facilities to its members shall be allowed as full deduction. If any activity is carried on with non members as alleged by the assessing officer and confirmed by the learned First Appellate Authority, the profit attributable to such business can only be taxed. Therefore in the case of the appellant if nom....
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....r 2017-18 on 22.10.2017 declaring a total income of Rs. 20,990/- after claiming deduction of Rs. 60,91,244/- u/s 80P of the Act. 4. The assessee furnished all the details asked for by the Ld.AO as well as made detailed submissions as to why the deduction u/s 80P should be allowed and how the facts of the following case laws are distinguishable to the facts of the assessee: a. M/s The Totgars' Co-operative Sale Society 08.02.2010 in Civil Appeal No. 1622 of 2010 ; b. M/s. Totagars' Co-operative Sale Society dt 16.06.2017 in ITA No. 100066 of 2016 ; c. M/s Citizen Co-operative Society, Hyderabad dt 08.08.2017 in Civil Appeal No. 10245 of 2017 . 5. The AO denied the deduction u/s 80P(2)(a)(i) amounting ....
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.... that the expression "Members" is not defined in the Income-tax Act. Hence, it is necessary to construe the expression "Members" in section 80P(2)(a)(i) of the Act in the light of definition of that expression as contained in the concerned co-operative societies Act. The Ld. A.R. submitted that the Hon'ble Supreme Court has considered the decision rendered by it in the case of Citizen Co-operative Society Ltd. (supra) and observed that the ratio decidendi of Citizen Co-operative Society Ltd. must be given effect to. Accordingly, he submitted that the assessee should be allowed deduction u/s 80P(2)(a)(i) of the Act. The Ld. D.R., on the contrary, submitted that the issue of deduction needs to be examined afresh in the light of decision r....
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....elow:- "7. The next common issue relates to rejection of deduction claimed u/s 80P(2)(d) of the Act in respect of interest income earned from fixed deposits kept with bank. We noticed earlier that the A.O. has observed in Assessment Year 2015-16 that the interest income received by the assessee from deposits kept with banks is not eligible for deduction u/s 80P(2)(c) 8s 80P(2)(d) of the Act since the assessee is not eligible for deduction u/s 80P(2)(a)(i) of the Act. In AY 2016-17, the AO assessed the interest income received on bank deposits under the head "Income from other sources" and denied deduction claimed u/s 80P(2)(d) of the Act. The Ld CIT(A) confirmed the action of the AO on this issue. 8. The Ld. A.R. submitted....