TaxTMI 
TaxTMI 
2022 (6) TMI 795
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.... 3. In the case of Karnataka High Court vs. The Totagars Co-Operative Sale Society", in Appeal No. 100069 of 2016 dated 05-01-2017, the Hon'ble High Court has decided whether for the purpose of Section 80P(2)(d) of the Act, a Co-operative Bank should be considered as a Co-operative Society or not. However, the Appeal No. 100066/2016 & Connected cases dated 16-06-2017, the Hon'ble Court has discussed the provisions of Section 80P as a whole and held that it is the character and nature of income which determines its taxability or exemption from taxability and the income which is clearly held to be not exempt and not deductible under Section 80P(2)(a) of the Act. 4. For these and such other reasons as may be urged at the time of hearing, the order of the CIT(A) may be vacated and that of the Assessing Officer be restored. 5. The appellant craves, leave to add, amend, alter or delete any of the above grounds of appeal during the course of appellate proceedings before the Hon'ble Tribunal." Shri Saianath Nagari Sashakari Patsanstha Maryadit 1. The CIT (A) erred both on facts and in law in passing the order. 2. The CIT(A) erre....
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....ion of disallowance u/s 80P of the Income-tax Act, 1961 (hereinafter referred to as "the Act" by the ld. CIT(A). 5. Taking ITA No. 75/PUN/2021 for A.Y. 2017-18 in the case of Shri Sainath Nagari Sahakari Patsnastha Maryadit as a lead case, we find that the facts are that the A.O while denying the claim of the assessee has held that the assessee has to be treated as a Co-operative Bank looking at the nature of its activities vis-à-vis new members and nominal members and also because it has invested its surplus funds in Co-operative Bank which do not fall u/s 80P(2)(d) of the Act. The ld. CIT(A) on the other hand vide para 5 of his order placed reliance in various cases as mentioned and has held that the assessee is eligible for deduction u/s 80P of the Act. The ld. D.R conceded to the facts in the present case that the issue is covered by various decisions of Pune Tribunal whereby in the given facts and circumstances deduction u/s 80P of the Act has been allowed. 6. We find in a recent decision of Pune Tribunal in ITA No. 589/PUN/2016 for A.Y. 2012-1Rs. 3, order dated 28-11-2018 has observed and held as follows: 4. We have heard both the sides and perused the r....
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....er amount ought to have been taxed by the AO is a consequence of the above view. The ld. AR placed on record a copy of an order of the Pune Bench dated 28-11-2018 in the case of ITO Vs. Sureshdada Jain Nagri Sahakari Patsanstha (ITA No.589/PN/2016) wherein the decision of ld. CIT(A) allowing deduction u/s.80P was approved by the Pune Tribunal. It is further noticed that the Pune Bench of the Tribunal in the 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. ITO (2015) 230 taxmann 309 (Kar.) allowing the deduction u/s. 80P on interest income and that of the Hon'ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction u/s.80P on interest income, earned from banks under similar circumstances. Both the Hon'ble High Courts have taken into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. 322 ITR 283 (SC). There being no direct judgment from the Hon....
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....ur of the assessee with the following observations. 3. We have heard the rival submissions in Virtual Court and gone through the relevant material on record. The Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016) decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune ITAT in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) had allowed the deduction in similar circumstances. 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. ITO (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of the Hon'ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction u/s.80P 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. (supra). No direct judgment from the Hon'ble jurisdictional High Court on the....