AI Drafter 
TaxTMI 
TaxTMI 
2018 (7) TMI 2281
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....nt order passed under s.143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") dated 24.11.2016 relevant to Assessment Year (AY) 2014-15. 2. The grounds of appeal raised by the assessee are as under:- "Your appellant being aggrieved by the Order passed by the learned Commissioner of Income Tax (Appeals)-4, Vadodara presents this appeal against the same on the following amongst other grounds. 1. The Commissioner of Income Tax (Appeals) has erred in directing the AO to tax the Interest Income received by the appellant from Savings Accounts held in nationalized banks and Panchmahal Dist Co op. Bank Ltd for Rs 28,87,397/- under the head Income From Other Sources u/s. 56 of the Income Tax Act, 1961. It i....
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....that the any interest received by Co.Op Society on investment made with Co.Op Bank/Co.op Society is eligible for deduction u/s. 80P(2)(d) of the Act. Therefore, the interest income received of Rs.1,66,038/- be allowed as deduction u/s. 80P(2)(d) of the Act." 4. The interconnected issue involved in the grounds of appeal relates to whether interest income earned on fixed deposits with the nationalized bank and cooperative bank would qualify for deduction under section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act. 5. At the outset, the learned counsel for the assessee fairly conceded that issue in dispute is squarely covered against the assessee by the decision of the Hon'ble jurisdictional High Court in the case of State Bank of....
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....ed from the admissibility of deduction under section 80P(2) of the Act. 4. In the result, appeal of the assessee is partly allowed for statistical purpose." Similarly we also note that the income earned by the assessee on the investment made with the any other cooperative society will be eligible for the deduction under section 80P(2)(d) of the Act. In this connection we find support & guidance from the order of this Tribunal in the case of The Sarvoday Credit cum Consumers Co-operative Society Ltd. vs. ACIT in ITA No.1875Ahd/2015 pertaining to the ASSESSMENT YEAR 2011-12 wherein it was held as under: "7. We have heard the Ld. Representatives of the respective parties and perused the relevant materials available on reco....
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....e above former decision goes contrary to hon'ble jurisdictional high court's judgment in Tax Appeal No. 473 of 2014 CIT vs. Sabarkantha District Cooperative Milk Producers Union Ltd. declining Revenue's identical question of law challenging tribunal's decision allowing Section 80P deduction in respect of interest earned on fixed deposits with a cooperative bank in assessment year 2009-10 i.e. post Section 80P(4) amendment w.e.f. 01.04.2007. Their lordships' reasoning to this effect reads as under: "4.0. Now, so far as proposed question no. B i.e. whether the Appellate Tribunal has substantially erred in upholding the order of the CIT(A) in deleting the disallowances of Rs.1,42,19,5157- under Section 80(P)(2)(d) of the Act is concer....
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....Bench has been pleased to allow the claim of the assessee for deduction of interest income derived from the deposits with the Banaskantha Dist. Central Co-operative Bank Ltd. 9. Taking into consideration the entire facts of the matter and the decision cited by the Ld. AR, we are of the considered view that the assessee is entitled to deduction u/s.80(2)(a)(i) & 80P(2)(d) of Rs.22,52,868/- & Rs.4,44,200/- being interest and dividend income respectively derived from the deposits with the Banaskantha Dist.Central Co-operative Bank Ltd. and thus accordingly delete the impugned disallowance of Rs.22,51,000/-. 10. The ground of appeal preferred by the assessee is allowed." The facts of the case on hand are identical as discus....