2023 (3) TMI 1417

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..../ 1047824745 both dated 06.12.2022. The assessments were completed by the Income Tax Officer, Non-Corporate Ward 3(5), Chennai, for the relevant assessment years 2017-18 & 2018-19 u/s. 143(3) / 143(3) r.w.s 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter "the Act") vide orders dated 20.12.2019 / 26.02.2021. Since, the facts and issue involved in these appeals is common, for the sake of convenience, they were heard together and dispose off by this consolidated order. 2. The only common issue in these two appeals of the assessee is as regards to order of the CIT(A) confirming action of the Assessing Officer in making disallowance of claim of deduction u/s. 80P(2)(d) of the Act, being interest earned received from deposits made w....

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..... The CIT(A) also confirmed decision of the Assessing Officer disallowing claim of deduction u/s. 80P(2)(d) by applying provisions of section 80P(4) and by holding that interest income earned by depositing excess fund in cooperative bank is a part of co-operative society's business and hence, denied claim of deduction. Aggrieved, the assessee came in appeal before the Tribunal. 6. We noted that there are interest income from Chennai Central Co-operative Bank, gratuity interest from Chennai Central Co-operative Bank, dividend from shares of CC Cooperative Bank, BDR interest from Chennai Co-operative Bank, RF interest from CC Co-operative Bank , SRF interest from Cooperative Bank and BF interest from CC Co-operative Bank in aggregate amoun....

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....operative State Agricultural and Rural Development Bank Limited" and it is not engaged in the banking activities. It is also clear that in view of Section 3 read with Section 56 of the Banking Regulation Act, 1949, the Assessee cannot be considered as a Primary Co-operative Bank but it is a Primary Agricultural Credit Society because Co-operative Bank must be engaged in the business of Banking as defined in the Section 5(b) of the Banking Regulation Act, which means accepting, for the purpose of lending or investment of deposits of money from the public. Similarly, u/s. 22(1)(b) of the Banking Regulation Act, as applicable to Cooperative Societies, no Co-operative Society shall carry on in banking business in India, unless it is a Co-operat....