2022 (12) TMI 1164

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....ri Keyur Patel, CIT-DR ORDER PER BENCH : These appeals by two different assessees assail the passing of the revisionary orders by the ld. Principal Commissioner of Income-tax u/s.263 of the Income-tax Act, 1961 (hereinafter also called 'the Act') in respect of assessment year 2017-18. Since a common issue is raised in these two appeals, we are, therefore, proceeding to dispose them off by this ....

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.... are that the assessee, a co-operative society, filed its return declaring total income at Rs.14,400/- after claiming deduction u/s 80P of the Act amounting to Rs.64,44,881/- in respect of interest from cooperative banks. The AO allowed the deduction. The ld. PCIT disputed the action of the AO on this count by declaring the assessment order to be erroneous and prejudicial to the interest of the re....

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....ri 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 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of the Hon'ble Delhi High Court in Mantola Cooperative ....

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....of the Act. 5. Coming to the deduction u/s.80P(2)(d) of the Act, it is crystal clear from the language of the provision that though co-operative banks, other than primary agricultural credit society or a primary co-operative agricultural and rural development bank, are not eligible for deduction pursuant to insertion of section 80P(4) w.e.f. 1.4.2007, but this provision does not dent the otherwis....