2022 (10) TMI 257

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 1961 (in short 'the Act'), dated 26.12.2017. 2. The grounds of appeal raised by the Revenue are as follows:- "1. Whether under the facts and circumstances in the case the Ld. CIT(A) was justified in deleting the addition made by Assessing Officer on account of interest earned from Co-operative Banks on FDRs other than co-operative societies at Rs.1,57,50,379/- claimed by the assessee as deduction under Section 80P(2)(d) of Income Tax Act, 1961 which is not admissible following the decision of Supreme Court in Totgar;'s Co-operative Sale Society Ltd. 322-ITR 283 (SC)-2010. 2. On the facts and circumstances in the case and in law, the Ld. CIT(A) has erred in deleting the addition made by the AO on account of addition made 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

.... respect of income which is assessable as business income and not as income from other sources. whereas in distinction to this, the provisions of Section 80(P)(2)(d) of the Act provides for deduction in respect of income of a coop society by way of interest or dividend from its investments with other co-op society if such income is included in the gross total income of the such Co-op society. In other words, Section 80(P)(2)(d) allows the deduction of interest received by a cooperative society from any other cooperative society which may also be a cooperative bank without any further restriction, condition or limitation. This section doesn't bar the deduction of interest received by cooperative society from a cooperative bank. The deduction....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Hon Guj. High Court in Sl. No.(c) above has held that "assessee co-op. society was eligible for deduction u/s 80P(2)(d) in respect of gross interest received from Surat Dist. Co- Op. Bank without adjusting interest paid to the said bank." The AR referred to the various legal decisions on the matter including the decision of the CIT(A)-4, Surat in the case of Shree Kumkotar Dudh Utpadak Sahakari Mandli Limtied vide order no. CIT(A), Surat-4/10180/2018-19 dtd. 14.05.2019 wherein Shree Kumkotar Dudh Utpadak Sahakari Mandli had earned interest from Surat District Co-op bank and had claimed deduction u/s 80P(2)(d). However, the AO had disallowed the deduction u/s 80P(2)(d) by relying on the case of CIT vs. Totagars Co-op Sale Society. Thereaf....