TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 560
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....n in affidavit dated 27.01.2020 attributing reasons thereof to communication gap(s) at various levels. Hon'ble apex court's landmark decision Collector, Land Acquisition vs., MST Katiji [1987] 167 ITR 471 (SC) has set the law long back that all such technical aspects must make way for the cause of substantial justice. The Revenue has also not been able to rebut the assessee's foregoing averments. The impugned delay of 151 days in filing of the instant appeal stands condoned therefore. 4. Next comes assessee's sole substantive grounds on merits that both the lower authorities have erred in law and on facts in rejecting its section 80P(2)(d) deduction claim of Rs. 9,35,731/- representing interest income derived from fixed deposits made with ....
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....ehemently argued and placed a paper book which is kept in record. According to the Ld. counsel the assessee invested his fund to the Cooperative Bank so the interest earned from the bank is liable for the exemption u/s 80P of the Act. Section 80P(4) is not affected in this particular deduction. The Revenue is wrongly interpreted the section 80P(4) and the judgment of the Hon'ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd, supra. 6. The Ld. DR vehemently argued and relied that the assessee invested in Cooperative Bank and the interest earned from the Cooperative Bank is not eligible u/s 80P(4). Section 80P(4) only restricted investment in the Cooperative Society not in bank. So the order of the Ld. CIT(A) is mainta....
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....Clause (ccv) of Section 5 Primary Co-operative Bank means a Cooperative Society other than a Primary Agricultural Credit Society- (1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakhs of rupees; (3) the bye-laws of which do not permit admission of any other co-operative society as a members. 3 Primary Credit Society Clause (ccvi) of Section 5 Primary Co-operative Society means a Cooperative society other than a primary agricultural credit society - (1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not les....
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....s. It was not the liability. It was not shown as liability in their account. In fact this amount which is in the nature of profits and gains, was not immediately required by the assessee for lending money to the members, as there were no takers. Therefore they had deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P(1) of the Act. In fact similar view is taken by the Andhra Pradesh High Court in the case of CIT v. Andhra Pradesh State co-operative Bank Ltd., [2011] 200 Taxman 220/12 taxmann.com 66. In that view of the matter, the order passed by the appellate authorities denying the benefit of de....
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....sessee would not be entitled for claim of deduction under Sec. 80P(2)(d), in respect of the interest income on the investments made with the co-operative bank. We thus set aside the order of the lower authorities and conclude that the interest income of Rs. 27,48,553/- earned by the assessee on the investments held with the co-operative bank would be entitled for claim of deduction under Sec. 80P(2)(d)." d) In the case of Tirupati Campus PH. II CO-OP HOUSING SOCIETY MARYADIT VERSUS THE NCOME TAX OFFICER WARD -7 (4), PUNE (ITAT_Pune) ITA No. 1429/PUN/2018, AY-2015-16, Date of Order 28/02/2019. 5. I have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to denial of claim of de....