2022 (12) TMI 1318

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....PNJ-1/10475/2017-18 [for the A.Y. 2014-15] respectively, in proceedings u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 [in short "the Act"]. 2. Heard both the parties. Case files perused. 3. It emerges during the course of hearing that the assessee's instant appeal raised three folded issue of assessee's challenging validity of sec.148/147 proceedings [not pressed] followed by sec.80P(2)(a)(i) deduction r.w.s. 80P(2)(d) deduction claim of Rs.8,33,126/- and Rs.11,89,267/-, assessment year-wise, respectively, along with CIT(A)'s jurisdiction to issue directions to the Assessing Officer, as the case may be. 4. I have given my thoughtful consideration to the rival submissions. There could be hardly any dispute that hon'ble apex ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... society despite the fact that they enjoy the licence from Reserve Bank of India to carry out the business of the banking. Then the issue that comes up for consideration is that whether the cooperative banks is also cooperative society or not?. This issue was considered by the Hon'ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon'ble High Court referring to the Hon'ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) held that the exemption is not to be denied in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. Even the decision of Pune Bench of the Tribunal in th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....erative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction u/s.80P on interest income earned from banks. Both the Hon'ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (2010) 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative....