TaxTMI 
TaxTMI 
2024 (6) TMI 1096
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...., which reads as follows: Grounds of appeal in ITA No.452/Bang/2024: 1. The order of the learned Commissioner passes under section 250 of the Act is opposed to law, equity, weight of evidence, probabilities and the facts and circumstances in the Appellant's case. 2. The appellant denies to be assessed to tax on total income as determined by the learned AO 1,40,79,450/- as against the total income reported by the Appellant's of Rs. NIL on the facts and circumstances of the case. 3. The learned commissioner of Income Tax (Appeals) erred in applying the ratio of judgment of Supreme Court in the case of Totgars Co-operative sales Society reported in 322 ITR 283(SC) which are distinguishable on 'fats of ....
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....ncome tax, circle-1(1) & TPS, Hubli in ITA No.376 to 379/Bang/2023 where interest income earned from investment in Co-opeartive Bank by multi purpose Cooperative Society is eligible for deduction u/s 80P(2)(d) of the Act. 7. The Appellant craves leave add, alter, delete or substitute any of the grounds urged above. 8. In the view of the above and other grounds that may be urged at the time of the hearing of the appeal, the Appellant prays that the appeal may be allowed in the interest of the justice and equity. 2. We consider the facts in ITA No.452/Bang/2024 for the AY 2017-18. Facts of the case are the assessee is an agricultural credit Cooperative Society which is engaged in the business of acceptance of deposits fro....
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....s and also the different-work culture/work allotted according to the type of member. After considering the facts of the case and the submission made by the assessee, the AO held that the assessee was not following the principle of mutuality and accordingly the entire deduction claimed by the assessee at Rs.1,23,57,259/- was disallowed by the AO. 3. The ld. CIT(A) observed on this issue that the facts in the present case are not in dispute. It is significant to point out that the main reason for disentitling the assessee from getting the deduction provided under Section 80P of the Act is that the claim is alternate to the 'Test of Mutuality'. What has been noticed by the AO, after analyzing in detail the activities of the assessee....
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....ons, it appears that the action taken by the ld. AO is in order and accordingly there is no need to interfere with the order passed by the AO. The contention of the assessee is therefore rejected and the grounds raised by the assessee were dismissed by the ld. CIT(A). Against this assessee is in appeal before us claiming deduction u/s 80P(2)(a)(i) of the Act. 4. We have heard the rival submissions and perused the materials available on record. The Hon'ble Apex Court in the case of Mavilayi Service Co-operative Bank Ltd. & Ors. v. CIT & Anr. (123 taxman.com 161) had held that the co-operative societies providing credit facilities to its members is entitled to deduction u/s 80P(2)(a)(i) of the Act. The Hon'ble Apex Court after considering ....
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.... & Ors. v. CIT & Anr. (supra). The relevant finding of the Co-ordinate Bench of the Tribunal in the case of M/s. Ravindra Multipurpose Cooperative Society Ltd. v. ITO (supra), reads as follows:- "6. Grounds 2-4 & additional Ground No.1: In respect of associate / nominal members, Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (2021) 123 taxmann.com 161 (SC) has held that the expression "Members" is not defined in the Income-tax Act. Hence, it is necessary to construe the expression "Members" in section 80P(2)(a)(i) of the Act in the light of definition of that expression as contained in the concerned co-operative societies Act. In view of this, the facts are to be examined in the light o....
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....irrespective of the fact whether such income of interest is earned from a scheduled bank or a co-operative bank and, thus, section 80P of the Act would not apply". In the present case the assessee has earned interest income from the deposit made out of the surplus funds in the co-operative banks and accordingly the same do not qualify for the purpose of claiming deduction u/s 80P of the Act. 5.3. Further, the ld. CIT(A) observed that the issue regarding the word "attributable" has been discussed elaborately by the Hon'ble Supreme Court in the case of M/s. Totagar's Cooperative Sale Society (2010) wherein it is held by the Hon'ble Supreme Court that the deduction u/s 80P of the Act is available only to the income which is attr....