2022 (12) TMI 1322

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....th the parties. Case file perused. 3. It emerges during the course of hearing that assessee's three folded substantive grounds challenging both the lower authorities action disallowing its section 80P(2)(a)(i) of Rs.93,846/- deduction, 80P(2)(d) deduction of Rs.4,68,206/-; respectively during the course of assessment hearing dated 20.12.2017 as upheld in the CIT(A)'s order. 4. I have given my thoughtful consideration to vehement rival submissions. The first and foremost issue between the parties is that of assessee's status as to whether it is a cooperative bank or a credit cooperative society as per the Revenue's and assessee's arguments, respectively. 5. There could be hardly any dispute that hon'ble apex court's recent landm....

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....s 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 the case of Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO, 120 taxmann.com 10 after making reference to the decisions of the Hon'ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. ....

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.... 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 Sales Society (2017) 395 ITR 611 (Kar.) is concerned, we find that the issue in that case was the eligibility of deduction u/s.80P(2)(d) of the Act on interest earned by the assessee co-operative society on i....