2022 (5) TMI 1084

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ER This appeal by the assessee is directed against the order of learned CIT(A) dated 30.8.2021 pertains to A.Y. 2017-18. 2. The grounds of appeal read as under : 1. The Ld. CIT(A) has erred in affirming with the Ld. Assessing Officer and disallowing the deduction u/s 80P(2)(a)(i) available to the society. 2. The Ld. CIT(A) has erred in disallowing the deduction u/s 80P(2)(d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....siness and profession during F.Y. 2016-17. The Assessing Officer was not satisfied with the deduction claimed under section 80P of interest earned from Cooperative bank. He referred to the provisions of section 80P(4) of the I.T. Act. He was of the opinion that same is applicable in the case of the assessee. He further referred some decisions and disallowed assessee's claim. 4. Upon assessee ap....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d to its earlier decision of Citizen Cooperative Society Ltd. (supra) :- "The following propositions may be culled out from the judgment: (I) That section 80P of the IT Act is a benevolent provision, which was enacted by Parliament in order to encourage and promote the growth of the co-operative sector generally in the economic life of the country and must, therefore, be read lib....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ive society, such as is evident from section 80P(2)(b) qua milk co-operative societies, the legislature expressly says so - which is not the case with section 80P(2)(a)(i); (V) That section 80P(4) is in the nature of a proviso to the main provision contained in section 80P(1) and (2). This proviso specifically excludes only co-operative banks, which are cooperative societies who must poss....