TaxTMI 
TaxTMI 
2024 (7) TMI 217
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....ed under section 143 (1) of the income tax act 1961 (the act) by central processing Centre Bangalore dated 21/12/2022, was dismissed disallowing the deduction under section 80P(2)(d) of the act, raising following grounds a. On the facts and in law, the Ld. CIT(A) erred in confirming the disallowance of Rs. 58,68,245/- of interest income received from Co- operative Banks. The Ld. CIT(A) has failed to appreciate that interest income received by a Co-operative Society from Co-operative Bank is allowable under Section 80P(2)(d) of the Act. b. On the facts and in law, the Ld. CIT(A) ought to have appreciated that the issue of allowability of interest income earned by a Co-operative Society from a Co-operative Bank on surplus fu....
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....mbent on the Appellant society to invest its surplus funds in a Central Bank or the State Co-operative Bank. Thus, interest earned on such investment is allowable as deduction under section 80P(2)(d) of the Act as held in Pathare Prabhu Co-operative Housing Society Ltd vs Income-tax Officer [2023] 153 taxmann.com 714 (Mumbai Trib.). e. On the fact and in law the mandatory requirement for cooperative societies to maintain certain statutory deposits or investments in cooperative banks, as stipulated by law, signifies a legislative intent to foster the co-operative sector. Simultaneously, the exclusion of interestor interest earned on such deposits from eligibility for deduction under Section 80P of the Income Tax Act contradicts the ....
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....taining several judicial precedent and stated that the issue is squarely covered in favour of the assessee. 04. The learned departmental representative supported the order of the learned CIT - A. 05. We have carefully considered the rival contention and perused the orders of the lower authorities. The facts clearly shows that assessee has earned interest on fixed deposit receipt amounting to Rs. 5,608,072 from various cooperative banks. Assessee has also received interest income on savings bank account of various cooperative banks and other bank amounting to Rs 299102/- which also included the interest from bank of Baroda of Rs. 38,929. On the total interest income from fixed deposit and savings bank assessee claim deduction under sec....
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....ue date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: 08. The disallowance of deduction under chapter VI A can only be made under section 143(1)(a) (v) of the act only on account of non-furnishing of return of income within the due date of filing of the return. This is not the reason. 2. Claim of the assessee cannot be said to be an incorrect claim in view of the explanation (a) which is as under:- (a) "an incorrect claim apparent from any information in the return" shall mean a claim, on the basis of an entry, in the return,- (i) of an item, which is inconsisten....
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.... that Act as under :"- "Co-operative bank" means a Co-operative society which is doing the business of banking as defined in clause (b) of sub-sections (1) of section 5 of the Banking Companies Act, 1949 and includes any society which is functioning or is to function as an Agricultural and Rural Development Bank under Chapter X. 014. Thus it is apparent that cooperative banks are also a co-operative society. Only difference is that those cooperative societies are doing the business of banking as per the banking companies act 1949. Therefore, merely because these cooperative societies cooperative bank they do not lose their status as a co-operative society. 015. According to the provisions of section 80P(2)(d) of the income ta....