TaxTMI 
TaxTMI 
2024 (1) TMI 1034
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....he co-operative banks. All these appeals have identical facts. Therefore, disposed off by this common order. 02. Grounds in ITA No. 3114/Mum/2023 for A.Y. 2013-14:- "1. On facts and in circumstances of the case and in law, the learned The Commissioner of Income-tax (Appeals), National Faceless Appeal Centre [hereinafter referred to as learned CIT(A)] erred in passing the Order u/s. 250 of the Income-tax Act, 1961 (the Act) without appreciating the facts, submissions, documents and case law placed on record 2. Validity of reopening of assessment 2.1. The learned CIT(A) erred in upholding the validity of reopening of assessment even though there was no reason to believe that the income has escaped assessment and ....
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....ve or finding in the Order of Hon. Supreme Court. 3.3. The learned CIT (A) erred when he ignored the fact that for a co-operative society to be considered as co-operative bank, it is required to have banking licence issued by Reserve Bank of India and co-operative society without banking licence cannot be considered as bank. 3.4. The learned CIT (A) erred when he failed to follow the principle laid down by the Order of Hon. Supreme Court that co-operative banks are also co- operative societies and income derived by a co-operative society from its investment held with a co-operative bank would be entitled for claim of deduction u/s. 80P(2)(d) of the Act. 3.5. The learned CIT(A) erred when he dismissed the Appellant....
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.... computation of total income assessee has claimed deduction under Section 80P of the Act on interest income from co-operative banks amounting to Rs.257,97,789/-, which is not allowable. The assessee objected to the reopening of the assessment as well as contested the same on merit. The learned Assessing Officer rejected both and denied the deduction under Section 80P (2) (a) as well as (d) of the Act. Accordingly, the assessment order under Section 147 read with section 143(3) of the Act, wherein the learned Assessing Officer held that assessee is a primary co-operative bank and therefore, it is clearly not eligible for deduction under Section 80P(2)(a)(i) of the Act in view of the specific provisions of Section 2(24)(viia) read with explan....
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....arned CIT (A) that interest income earned from co-operative bank without banking license only would be eligible for such deduction. It is further stated that there is no such directive or finding in the decision of the Hon'ble Supreme Court. The claim is also that a co-operative society to be considered as a co-operative banks is mandatorily require to have license issued by Reserve Bank of India and a co-operative society without banking license cannot be considered as bank. 08. We have heard the rival contentions and perused the orders of the lower authorities. The facts clearly show that assessee is a co-operative credit society engaged in the business of providing credit facilities to its members only. Naturally, it does not have....
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....the assessee succeeds on ground no.1 itself. 09. Even on the merits as the assessee is a co-operative society engaged in carrying on the business of providing credit facilities to its members. The whole of the amount profits and gains of such business attributable to such activities is deductible under Section 80P(2)(a) of the Act. Even otherwise, in respect of any income by way of interest or dividend derived by the co-operative society from its investment with any other co-operative society is also allowable as deduction fully under Section 80P(2)(d) of the Act, the facts are clear that assessee is a co-operative society and co-operative banks are also co-operative societies. The provisions of Section 80P (4) of the Act specifically de....
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....unting to Rs.2,31,63,766/-, which was challenged before the learned CIT (A) allowing the appeal of the assessee partly. As we have already held for A.Y. 2013-14, that reopening of the assessment is without any tangible material and further even otherwise on merit, the assessee is eligible for deduction under Section 80P(2)(d) of the Act. Therefore, for the reasons given for A.Y. 2013-14, the appeal of the assessee is allowed for A.Y. 2014-15 also. 013. For A.Y. 2017-18, the assessee filed its return of income at Rs.nil on 7th November, 2017, which was picked up for scrutiny and therefore, a show cause notice was issued to the assessee that why on interest income earned of Rs.2,68,31,658/- being interest received from co-operative banks o....