TaxTMI 
TaxTMI 
2023 (12) TMI 1313
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....whereby and whereunder the interest on investments derived by the appellant from co-operative banks has been disallowed for deduction u/s. 80P(2) as claimed by the assessee. The assessee is a co-operative society filed its return of income on 24.10.2017 for A.Y. 2017-18 declaring gross total income at Rs.73,37,467/- and returned income at Rs.5,39,390/- after claiming Rs.67,98,074/- as deduction u/s. 80P(2)(a)(i) of the Act which was finalised determining income at Rs.1,71,37,467/- rejecting the claim of deduction u/s. 80P of the Act. 2. The issue before us is this as to whether the interest on investment derived by the appellant from scheduled bank and co-operative bank is eligible for deduction u/s. 80P(2)(d) of the Act. 3. At the time o....
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....ase of The Totgars' Cooperative Sale Society Ltd. vs. ACIT (supra). While dealing with the identical issue, the Bench was pleased to observe as follows: "9. We have perused 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 sa....
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....2011] 336 ITR 516/200 Taxman 220/12 taxmann.com 66. 9.2 Therefore, reliance was placed by the Ld.DR on the decision of Hon'ble Supreme Court in the case of Totgars Co-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 reporte....