AI Drafter 
TaxTMI 
TaxTMI 
2023 (9) TMI 150
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.... in all the appeals under consideration. The relief claimed by the assessee is in support of the deduction denied u/s 80P(2)(d) of the Act on the interest and dividend received from cooperative bank/cooperative society from the investments made in other cooperative banks The ld.AR submitted that the issues in all the appeals are common, hence he requested to consider the facts relating to asst. year 2015-16. For the sake of conveniences grounds raised by the assessee for asst. year 2015-16 are reproduced as under:- "The Grounds mentioned hereinafter are without prejudice to one another. 1. That the learned Commissioner of Income Tax (Appeals) [`CIT(A)'] erred on facts and circumstances of the case and in law so far as ....
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....e Appellant from Co-operative Bank is not eligible for deduction even under section 80P(2)(a)(iii) of the Act. 6. The learned CIT(A) has erred on facts and in circumstances of the case and in law by confirming the Assessment Order passed by the learned Assessing Officer ('AO') who has held that the interest received by the Appellant from Co-operative Banks for deposit of amount of Cash Reserve and Liquid Assets which are required to be statutorily maintained (in accordance with the Karnataka Co-operative Societies' Act, 1959 read with the Order of the Registrar of Co-operative Societies) is not eligible for deduction under section 80P(2)(a)(i) of the Act. 7. The learned CIT(A) has grossly erred on facts and in ....
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....reopening. The assessee did not raise any objection against the reopening of assessment proceedings. Statutory notice u/s. 142(1) was issued on 28/06/2021, 09.02.2022 and 15.02.2022 along with questionnaire and duly served on the assessee. In response to the above notices, assessee has submitted the details called for through electronically. 3. The assessee is a marketing cooperative society registered under Karnataka Cooperative Society Act 1959. The main business activity is (a) processing & marketing of agricultural produce grown by its members (b) providing credit facilities to its members (c) the purchase & selling of agricultural implements, seeds or other articles intended for agriculture to its members ....
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....g has be submitted by the assessee - 4.3 The claim of assessee u/s 80P(2)(d) of the Act at Rs. 54051877/- is disallowed by the AO. 5. Aggrieved by the order of the AO, the assessee filed appeal before the ld. CIT(A). 6. The ld. CIT(A) passed impugned order by granting partial relief to the assessee by holding that assessee is not eligible for deduction in support of interest received from the coordinate banks u/s 80P(2)(a)(i) and 80P(2)(d) of the Act. 7. Aggrieved by the order of the ld. CIT(A), the assessee is in appeal before this Tribunal for all the assessment year under consideration. 8. Ground No. 2-3 are regarding disallowance of claim u/s 80P(2)(d) 8.1 The ld.AR submitted that the cooperative societies /cooperative....
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....sed the submissions advanced by both the sides in the light of the records placed. When we look at the decision of Hon'ble Supreme Court in case of Totgars Co-operative Sale Society's case reported in (2010) 188 Taxman 282, relied by the Ld.DR. Hon'ble Supreme Court was dealing with a case where the assessee therein, apart from providing credit facilities to the members, was also in the business of marketing of agricultural produce grown by its members. The sale consideration received from marketing agricultural produce of its members was retained in many cases. The said retained amount payable to its members from whom produce was bought, was invested in a short-term deposit/security. Such amount retained by the assessee therein was a l....
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....-operative Sale Society Ltd. vs. ITO reported in (2010) 188 Taxman 282 is distinguishable on facts. The adjudication by the Hon'ble Supreme Court in case of Totgars Co-operative Sale Society Ltd. vs. ITO(supra) was in context of Sec. 80P(2)(a)(i), and not on the entitlement of a cooperative society towards deduction under Sec. 80P(2)(d) on the interest income on the investments/deposits parked with a cooperative bank. 9.3 At this juncture, we refer to subsequent decision of Hon'ble Karnataka High Court in the case of PCIT Vs. Totagars cooperative Sale Society reported in (2017) 395 ITR 611, wherein Hon'ble Court held that, a co-operative society would not be entitled to claim of deduction under Sec. 80P(2)(d). At the same time, we fi....