2022 (3) TMI 1350

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..... Since the identical facts and issues are involved in all above three appeals, we proceed to dispose of the same by this common order. 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.2254/PUN/2017 for the assessment year 2012-13 are stated herein. ITA No.2254/PUN/2017, A.Y. 2012-13 : 4. The assessee raised the following grounds of appeal :- "1) On facts and in circumstances of the case the Learned CIT (A) has erred in law and on merit in upholding the disallowance u/s 80P(2)(d) of Rs. 1,71,51,013/- on account of interest received from Saraswat co-op bank. 2) On facts and in circumstances of the case the Learned A.O. has erred in law and on merit in holding that a Co-op Bank ....

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....tax under the provisions of section 80P(2)(d) of the Act. The said claim was rejected by the Assessing Officer by holding that the cooperative bank itself is not eligible for exemption of its income u/s 80P of the Act. 6. Being aggrieved by the order of assessment, an appeal was preferred before the ld. CIT(A), who vide impugned order confirmed the action of the Assessing Officer. 7. Being aggrieved by the decision of the ld. CIT(A), the appellant is in appeal before us. 8. When the appeal was called on for hearing, none appeared on behalf of the appellant despite due service of notice of hearing. 9. On the other hand, ld. CIT-DR placing reliance on the orders of the lower authorities submitted that the appellant is not entitled....

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.... the Hon'ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon'ble High Court referring to the Hon'ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) held that the ratio of decision of the Hon'ble Supreme Court in the aforesaid case (supra) held not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. 12. Even the decision of Pune Bench of the Tribunal in the case of Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO, 120 taxmann.com 10 wherein the Tribunal after making reference to the decisions of the Hon'ble Supreme Court in the case of Tot....

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....P on interest income earned from banks. Both the Hon'ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (2010) 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is concerned, we find that the issue in that case was the....