2021 (11) TMI 1121

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....Act, 1961 without properly verifying the details of investee. 2. The learned A.O. has wrongly interpreted the provisions of section 80P(2)(d) by not treating investees i.e. Belgaum Industrial Cooperative Bank and Belgaum District Central Cooperative Bank as cooperative societies. 3. The learned A.O. has wrongly interpreted the definition of Cooperative Society vide section 2(19) of the Income Tax Act, 1961 by treating those entities which are registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies, as not being cooperative societies. 4. The Ld A.O. has grossly disallowed the deduction claimed U/s 80P(2)(d) witho....

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....eived from other cooperative society is eligible for deduction u/s 80P(2)(d) of the Act. 5. On the other hand, ld. Sr. DR placed reliance on the orders of the lower authorities. 6. We heard the rival submissions and perused the material on record. The solitary issue in the present appeal relates to the eligibility of exemption of income received from cooperative banks under the provisions of section 80P(2)(d) of the Act. The Assessing Officer as well as the ld. CIT(A) was of the opinion that the same does not call for exemption u/s 80P(2)(d) of the Act as they were received from a cooperative bank. The reasoning of the lower authorities cannot be sustained in the eyes of law as the cooperative banks also the spies of the cooperative socie....

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....ouharda Credit Co-op. Ltd. (supra) by observing 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 Delh....