TaxTMI 
TaxTMI 
2022 (12) TMI 76
X X X X Extracts X X X X
X X X X Extracts X X X X
....ugh the appellants case was selected for limited Scrutiny under CASS of Deduction under chapter VIA and Low income and high loans / advances / investments the Learned Assessing Officer erred in examining other issues and has wrongly travelled beyond his permitted ambit in making the disallowances u/s. 40(a)(ia) and Sec. 36(1)(v). 2) The learned CIT(A) ought to have considered that the interest earned on statutory investments of Statutory Funds in the Apex Bank(Cooperative Society) as business income and enjoys deduction u/s 80P. It is therefore prayed the erroneous additions made by the Assessing Officer under the head Income from other Sources to be deleted. 3) The Learned CIT(A) has not considered that the provisions u/s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d that the appellant is a cooperative bank. The Assessing Officer also made an addition of Rs.11,21,494/- under the provisions of section 40(a)(ia) for non-deduction of tax at source u/s 194A of the Act. The Assessing Officer also made a disallowance on account of contribution made to Provident Fund (PF) of Rs.41,837/- u/s 36(1)(iv) and Rs.825/- u/s 36(1)(va) on the ground that the contribution was not made to approved fund. The Assessing Officer denied the exemption u/s 80P(2)(a)(i) by holding that the interest income earned from Goa State Cooperative Society Limited is not a cooperative society but a cooperative bank. 4. Being aggrieved by the above assessment order, an appeal was filed before the ld. CIT(A) who vide impugned order hel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e material on record. The only issue in the present appeal is pertaining to the allowability of deduction under the provisions of section 80P(2)(d) of the Act. On perusal of provisions of section 80P(2)(d), it is clear that the income derived by a cooperative society from its investment held with other cooperative societies shall be exempt from the total income of a cooperative society. Therefore, what is relevant for claiming of deduction u/s 80P(2)(d) is that interest income should have been derived from the investment made by the assessee cooperative society with any other cooperative society. In the present case, the reasoning given by the lower authorities for denial of exemption u/s 80P(2)(d) of the Act is that interest was received f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Tribunal in the case (supra) is as under :- "9. The Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016, dated 9-4-2019) decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014, dated 19-8-2015) 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 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of the Hon'ble Delhi High ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct of this decision, it turns out that the same is not germane to case under consideration in view of the position that the claim of the instant assessee is directly about the eligibility of deduction u/s.80P(2)(a)(i) of the Act and not u/s.80P(2)(d). Moreover, so many decisions relied on by the ld. AR amply go to prove that the view taken by the AO, cannot by any standard, be construed as not a possible view. We, therefore, hold that the ld. Pr. CIT was not justified in exercising the revisional power anent to interest income of Rs.22,34,270/- earned on investments made with co-operative banks." 8. Respectfully following the above decision of the Co-ordinate Bench of this Tribunal (supra), I am of the considered opinion that the interes....