2023 (2) TMI 918
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....he 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 these and such other reasons as may be urged at the time of hearing, ....
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....t, 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 eligible for deduction under Sec. 80P(2)(d) of the Act. 8. After necessary deliberations....
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.... 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 view that the aforesaid amendment would jeopardize the claim of deduction of a co-operative society under Sec. 80P(2)(d) in respect ....
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....ed 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(2)(d). Appellant in that case is also a sugar co-operative like that of present assessee. The above decision of Hon'ble ITAT is squarely binding on me. The....