TaxTMI 
TaxTMI 
2024 (6) TMI 939
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....2. 2. In its appeal, the assessee has raised the following grounds:- "Non Grant of Deduction claimed under section 80P on account of interest and Investment Income "1. erred in affirming the action of the Centralised Processing Center, Income Tax Department ("CPC-ITD") of not considering the deduction claimed of Rs. 3,67,640 under section 80P of the Act. 2. erred in not appreciating the submission made by the Appellant that the said eligible deduction was not considered on account of Inadvertent error made while filing the Income Tax Return. 3. erred in holding that deduction can be claimed by filing revised return without appreciating the fact that time limit of filing revised return has already passed." 3. The brief facts of the....
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....the assessee in the present appeal is against the denial of deduction claimed under section 80P(2)(d) of the Act in respect of interest income earned from the investments with Co-operative Banks. From the perusal of the record, we find that vide intimation issued under section 143(1) of the Act, the interest income of Rs. 10,11,013 earned by the assessee from grant of loans to the members was allowed under section 80P(2)(a)(i) of the Act. Further, the interest income of Rs. 40,115 from savings in Co-operative Bank was allowed under section 80P(2)(d) of the Act. However, the interest income of Rs. 3,67,744 from fixed deposits in Co-operative Banks was disallowed under section 80P(2)(d) of the Act. The learned CIT(A) also did not grant any re....
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....the purpose of provisions of section 80P(2)(d) of the Act, two conditions are required to be cumulatively satisfied- (i) income by way of interest or dividend is earned by the co-operative society from the investments, and (ii) such investments should be with any other co-operative society. Further, the term "co-operative society" is defined under section 2(19) of the Act as under: "(19) "co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies ;" 9. In the present case, there is no dispute that the assessee is a Co-operative Society, which is engaged in providing cred....
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....of relevance only in a case where the assessee, who is a Co-operative Bank, claims a deduction under section 80P of the Act. We also find that in PCIT v/s Annasaheb Patil Mathadi Kamgar Sahakari Pathpedi Ltd. [2023] 150 taxmann.com 173 (SC), the Hon'ble Supreme Court held that a taxpayer who is merely giving credit to its members cannot be said to be the Co-operative Banks/Banks under the Banking Regulation Act and the banking activities under the Banking Regulation Act are altogether different. Therefore, the Hon'ble Supreme Court held that the assessee, a co-operative credit society, could not be termed a bank/Co-operative Bank and that being a credit society, it was entitled to exemption under section 80(P)(2) of the Act. Thus, we find n....