TaxTMI 
TaxTMI 
2023 (2) TMI 918
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.... 1. Whether on facts and circumstances of the case and in law, the Id. CIT(A) has erred in giving relief to assessee on the issue of deduction u/s 80P(2)(d) of the Act without appreciating the fact that Hon. Kamataka High Court decided the issue in favour of Revenue vide its judgment in the case of The Totgars Co-operative Sale Society and that the SLP on the issue is pending before the Hon. Supreme Court? 2. Whether on the facts and circumstances of the case and in law, the Id. CIT(A) has erred in giving relief to the assessee on the issue of disallowance of ceremony expenses wherein assessee failed to substantiate that the expenses were incurred 'wholly and exclusively for the purpose of business? 3. For the....
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....01.04.2007. On a perusal of the order passed by the Pr. CIT under Sec. 263 of the Act, we find, that he was of the view that pursuant to insertion of sub-section (4) of Sec. 80P, the assessee would no more be entitled for claim of deduction under Sec. 80P(2)(d) in respect of the interest income that was earned on the amounts which were parked as investments/deposits with the co-operative bank, other than a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank. Observing, that the co-operative banks from where the assessee was in receipt of interest income were not cooperative societies, the Pr. CIT was of the view that the interest income earned on such investments/deposits would not be eligib....
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....ve society shall be deducted in computing its total income. We may herein observe, that what is relevant for claim of deduction under Sec. 80P(2)(d) is that the interest income should have been derived from the investments made by the assessee co-operative society with any other co-operative society. We are in agreement with the view taken by the Pr. CIT, that with the insertion of sub-section (4) to Sec. 80P of the Act, vide the Finance Act, 2006 with effect from 01.04.2007, the provisions of Sec. 80P would no more be applicable in relation to any co-operative bank, other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank. However, at the same time, we are unable to subscribe to his....
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....s order of the Tribunal was followed by the learned CIT(A) while providing relief to the assessee holding as follows: "4.3.2. Assessee also furnished copy of order of Hon'ble Jurisdictional ITAT, Pune, in the case of Rena Sahakari Sakhar Karkhana ltd vs. Pr.CIT, Aurangabad [ITA No.1249/Pun/2018 decided on 7.1.2022]. In that case, the Ld. Pr.CIT set aside the order u/s 143(3) on the reasoning that the AO had allowed deduction u/s 80P(2)(d) on interest received by assessee from Co-operative Banks which was stated to be against provision of section 80P(4) of the Act. In the judgment, the Hon'ble Jurisdictional Tribunal took the view that interest received by Co-operative Society from Co-operative Bank is eligible for deduction u/s 80P....