TaxTMI 
TaxTMI 
2023 (7) TMI 741
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ["learned CIT(A)"], for the assessment year 2018-19. 2. When the present appeal was called for hearing neither anyone appeared on behalf of the assessee nor was any application seeking adjournment filed. Therefore, in view of the above, we proceed to dispose off the present appeal ex-parte qua the assessee, after hearing the learned Departmental Representative ("learned D.R."). 3. In this appeal, the Revenue has raised the following grounds:- "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing deduction u/s.80P (2) (d) of the IT Act, 1961 without appreciating legislative intent of the inserted provision of 80(P) which specifically provides that section shall not apply in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....time and has spent the same on the maintenance of its building as spelt out in its bye-laws. For the year under consideration, the assessee filed its return of income on 26/09/2018, declaring a total income of Rs. 30,770. During the year, the assessee earned interest income of Rs. 1,62,98,358, on fixed deposits and saving bank accounts that are maintained in the Co-operative Banks. The same has been claimed as a deduction under section 80P(2)(d) of the Act. During the assessment proceedings, the assessee submitted that the interest has been received from investments made with The Mumbai District Central Co-operative Bank Ltd, The Saraswat Co-operative Bank Ltd, and The Shamrao Vithal Co-operative Bank Ltd. The assessee claimed that it is en....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Co-operative Banks. The assessee is a registered Co-operative Housing Society and during the year earned interest income of Rs. 1,62,98,358 on fixed deposits and saving bank accounts maintained with The Mumbai District Central Co-operative Bank Ltd, The Saraswat Co-operative Bank Ltd, and The Shamrao Vithal Co-operative Bank Ltd. 8. Before proceeding further, it is relevant to note the provisions of section 80P of the Act under which the assessee has claimed the deduction in the present case. As per the provisions of section 80P(1) of the Act, the income referred to in sub-section (2) to section 80P shall be allowed as a deduction to an assessee being a Co-operative Society. Further, section 80P(2)(d) of the Act, reads as under: ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nvest 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 registered under the Maharashtra Co-operative Societies Act and earned interest, which was claimed as a deduction under section 80P(2)(d) of the Act. The AO denied the deduction under section 80P(2)(d) of the Act on the basis that the Co-operative Bank is covered under the provisions of section 80P(4) of the Act. We find that the Hon‟ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. vs CIT, Calicut, [2021] 431 ITR 1 (SC) while analysing the provisions....