2023 (9) TMI 1487

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....led a petition accompanied with affidavit of the CEO stating therein the reasons for the belated filing of this appeal. We are of the view that the delay in filing the appeal is on the fault of the concerned tax practitioner and no latches can be attributed to the assessee. There is a reasonable cause for belated filing of this appeal. Hence, we condone the delay and proceed to dispose off the appeal on merits. 3. The solitary issue that is raised is whether CIT (A) is justified in confirming the disallowance of claim under section 80P(2)(a)(i) / 80P(2)(d) of the Act with respect to interest income amounting to Rs. 5,07,822/- earned on investments with South Canara District Central Co-operative Bank Ltd. 4. Brief facts of the cas....

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....ed an amount of Rs.  11,47,238/- holding that the appellant had violated the principle of mutuality." 5. Aggrieved, assessee filed appeal before the First Appellate Authority (FAA). The CIT (A) partly allowed the appeal of the assessee by granting deduction under section 80P(2)(a)(i) of the Act amounting to Rs. 11,47,238/-. As regards interest income received from South Canara District Central Co-operative Bank Ltd., amounting to Rs. 5,07,822/-, the claim of the assessee under sections 80P(2)(a)(i) and 80P(2)(d) of the Act was rejected by the CIT (A). The relevant finding of the CIT (A) reads as follows: "6.1 In view of the para 4.14 (a) supra, the appellants alternative arguments fails. As per the interpretation ....

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....o-operative Societies Act, 1959 and Rules, and as such is entitled to be assessed as income from business for which deduction under section 80P(2)(a)(i) of the Act is to be allowed. In this context, the learned AR relied on the order of the Bangalore Benches of the Tribunal in the case of Bharat Co-operative Credit Society Vs. ITO for Assessment Year 2015-16 in ITA No. 793/Bang/2022 (order dated 28.11.2022). Therefore, it was submitted that the issue may be restored to the AO for examination whether the investments are made with the Central Cooperative Banks under the relevant Acts and Rules which would entail the benefit of deduction under section 80P(2)(a)(i) of the Act. 7. The learned Standing Counsel supported the order of the C....