TaxTMI 
TaxTMI 
2022 (10) TMI 1027
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....18-19 respectively. Since, identical issue has been raised in these appeals, these appeals are taken up together for adjudication and are decided by this common order. 2. Shri Rajesh Shah appearing on behalf of the assessee submitted that the solitary issue in these appeals is with respect to disallowance of assessee's claim of deduction of interest income under section. 80P(2)(d) of the Income Tax Act, 1961 [in short 'the Act']. The Ld. Authorized Representative of the assessee submitted that the assessee is a Co-operative Housing Society. The assessee had deposited certain amounts with Co-operative Banks on which the assessee had earned interest income. The assessee had earned interest of Rs. 12,30,371/- in assessment year 20....
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.... defended the impugned orders for the respective assessment years. The Ld. Departmental Representative placed reliance on the decision of Hon'ble Supreme Court of India in the case of Totagars, Co-operative Sale Society Ltd. vs. ITO reported as 322 ITR 283 and also the decision of Hon'ble Karnataka High Court in the case of PCIT vs. Totagars, Co-operative Sale Society, 83 taxmann.com 140. 5. We have heard the submissions made by rival sides. The solitary issue in both these appeals is denial of deduction under section. 80P(2)(d) of the Act to the assessee citing the provisions of section 80P(4) of the Act. A bare perusal of the provisions of section 80P(4) would show that it has carved out exception for application of provisions un....
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....ty from investments with a co-operative bank, would be entitled for deduction under section 80P(2)(d) of the Act. The relevant extract of the order reads as under:- "7. We have deliberated at length on the issue under consideration and are unable to persuade ourselves to be in agreement with the view taken by the lower authorities. Before proceeding further, we may herein reproduce the relevant extract of the said statutory provision, viz. Sec. 80P(2)(d), as the same would have a strong bearing on the adjudication of the issue before us: "80P(2)(d) (1) Where in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and....
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....t of the interest income on their investments parked with a cooperative bank. We have given a thoughtful consideration to the issue before us and are of the considered view that as long as it is proved that the interest income is being derived by a co-operative society from its investments made with any other cooperative society, the claim of deduction under the aforesaid statutory provision, viz. Sec. 80P(2)(d) would be duly available. We may herein observe that the term 'cooperative society' had been defined under Sec. 2(19) of the Act, as under:-- '(19) "Co-operative society" means a cooperative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in an....