TaxTMI 
TaxTMI 
2023 (3) TMI 46
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.... the assessment year 2018-19. 2. In this appeal, the assessee has raised the following grounds: - "On the facts and in the circumstances of the case and in law, 1. The Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi has erred in confirming action of Ld AO of disallowing the deduction claimed u/s 80P(2)(d) of Rs.4,52,17,289/-. 2. The Ld Commissioner of Income Tax (Appeals), NFAC, Delhi has erred in confirming action of AO not allowing the deduction u/s 80P(2)(a)(i) of Rs. 4,52,17,289/-. The appellant craves leave to add, amend, modify or delete any grounds of appeal." 3. The brief facts of the case are: The assessee is a society registered under Maharashtra Co-operative Societies Act, 1960 carr....
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....s it was held that the term "co-operative banks" is missing in section 80P(2)(d) of the Act. Accordingly, the Assessing Officer disallowed the deduction of Rs.4,52,17,289, claimed by the assessee in respect of interest and dividend earned from investment with co-operative banks under section 80P(2)(d) of the Act. 4. The learned CIT(A) vide impugned order dismissed the appeal filed by the assessee and held that deduction under section 80P(2)(d) of the Act is not allowable in respect of interest earned from deposits kept in a co-operative bank. Being aggrieved, the assessee is in appeal before us. 5. We have considered the submissions of both sides and perused the material available on record. The only grievance of the assessee is again....
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....dispute that assessee is co-operative society and thus if any income referred to in sub-section (2) to section 80P of the Act is included in gross total income of the assessee, the same shall be allowed as deduction. Since the assessee is registered under the Maharashtra Co-operative Societies Act, 1962, it is required to invest or deposit its funds in one of the modes provided in section 70 of the aforesaid Act, which includes investment or deposit of funds in the District Central Co-operative Bank or the State Co-operative Bank. Accordingly, the assessee kept the deposits in co-operative banks and earned interest, which was claimed as deduction under section 80P(2)(d) of the Act. The Revenue denied the deduction under section 80P(2)(d) of....
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....rtion of Sub-section (4) of Sec. 80P, 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, but however, are unable to subscribe to their view that the same shall also jeopardise the claim of deduction of a co-operative society under Sec. 80P(2)(d) in respect of the interest income on their investments parked with a co-operative bank. We have given a thoughtful consideration to the issue before us and are of the considered view that as long as it is proved that the interest income is being derived by a co-operative society from its ....