2024 (7) TMI 648

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....e has raised the following grounds:- 1. On the facts and circumstances of the case and In law the learned CIT(A) erred In confirming the addition made by A.O by disallowing deduction u/s 80P relating to interest income from co-operative bank of Rs. 24,07,420/ deductible u/s 80P(2)(d) and holding it as income from other sources. 2. Without prejudice Interest income from Bagalkot District Coop Bank is based on statutory requirement as per section 19 and rule 7 of The Souharda Sahakari Act 1997 and hence deductible. 3. On the facts and circumstances of the case and in law the learned CIT(A) erred In confirming the addition made by A.O by disallowing deduction u/s 80P relating to interest income of Rs. 2,90,477/- from scheduled bank, inte....

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....n view of the Order in the case of Principal Commissioner of Income-tax, Hubballi vs. Totagars Cooperative Sale Society [2017] 83 taxmann.com 140 (Karnataka) the assessee society on deposit /Investment made in Co-operative bank is also not eligible for claim of deduction u/s 80P(2)(d) of the I.T.Act, 1961. 4. Being aggrieved by the Assessment completed u/s 143(3) of the Income Tax Act, 1961, the assessee preferred an appeal before the CIT(A)/NFAC. The ld. CIT(A) dismissed the Appeal of the assessee society by following the decision of the Hon'ble jurisdictional High Court in the case of PCIT v. Totagars Co-operative Sales Society 83 taxmann.com 140 (Kar.) (2021). 6. Aggrieved by the order of the Ld.CIT(A), assessee is in appeal before thi....

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....uction 80P(2)(a)(i) of the Act. The learned Counsel for the assessee further submits that the ld.CIT(A) is not justified in upholding the view taken by the A.O. 10.1 We are also of the opinion that the interest received by the assessee from Investment held cannot be treated as operational income of the assessee because the interest received was not from the credit facilities provided to its members as envisaged in section 80P(2)(a)(i) of the Income Tax Act. This issue has been settled by the Hon'ble jurisdictional High Court in the case of PCIT v. Totagars Cooperative Sale Society [2017] 83 taxmann.com 140 (Karnataka) wherein it is held that the source of funds are irrelevant. Therefore the contention of the Assessee is not tenable & we ag....