2024 (4) TMI 935

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....rder. 3. Brief facts of the case for the A.Y. 2014-15 are that the appellant is a Co-operative credit society engaged in providing credit facilities to its members. The Return of Income for the assessment year 2014-15 was filed on 27.09.2015 declaring total income of Rs. Nil after claiming exemption of interest income of Rs. 21,50,326/- earned from Fixed Deposits with Bank of Maharashtra u/s. 80P(2)(a)(i) of the Income Tax Act, 1961 ('the Act'). Initially, the assessment was completed by the Assessing Officer vide order 26.07.2016 determining total income at Rs. 70,503/-. Thereafter, the AO vide order dated 27.09.2019 passed u/s 143(3) r.w.s. 263 of the Act, determined total income of the appellant at Rs. 22,20,829/- as against the incom....

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.... of the Hon'ble Bombay High Court in the case of PCIT vs. Quepem Urban Co-operative Credit Society Ltd., 438 ITR 631 (Bom.). 9. As regards, the issue as to the allowability of exemption under the provisions of section 80P(2)(a)(i) in respect of interest income earned by a cooperative society from the scheduled banks, there is a cleavage of judicial opinion among several High Courts on the issue of eligibility of this kind of income for exemption u/s. 80P(2)(a)(i) of the Act. The Hon'ble Punjab & Haryana High Court in the case of CIT vs. Punjab State Cooperative Federation of Housing Building Societies Ltd. 11 taxmann.com 448, the Hon'ble Gujarat High Court in the case of State Bank of India Vs. CIT 389 ITR 578 (Guj.), the Hon'ble Delhi H....