TaxTMI 
TaxTMI 
2024 (7) TMI 1082
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....Bank Type Amount in Rs. 1 Bank of India Scheduled Bank Commercial 250395 2 HDFC Bank Scheduled Bank Commercial 189940 3 Axis Bank Scheduled Bank Commercial 325622 4 Bank of Baroda Scheduled Bank Commercial 291231 5 Saraswati Co-op. Bank Co-op Bank 769384 6 SVC Co-op. Bank Co-op Bank 2030903 7 Mumbai Central Bank District Co-op Co-op Bank 160088 Total 40,17,563 3. By perusing the said claim of the Assessee, the ld. A.O. noticed that as per the information furnished by the Assessee, the Assessee has claimed deduction u/s. 80P(2)(d) of the Act qua interest income of Rs. 33,57,902/- out of the total interest of Rs. 40,17,563/- derived from the deposits made with Bank of India, HDFC Bank, Axis Bank, Bank of Baroda, Saraswati Co-op. Bank and Mumbai District Central Co-op Bank. 3.1 The Assessee before the ld. A.O. mainly claimed that the co- operative banks are registered under "Co-operative Societies Act" and, therefore, the interest earned from such co-operative banks which are primarily co-operative societies is exempt u/s. 80P(2)(d) of the Act. 3.2 The ld. A.O. tho....
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.... of the Assessee. 5.2 The provisions of section 80P(2)(d) of the Act reflects "Co-operative Society" but not the "Co-Operative Bank" therefore question emerge "whether income earned by way of interest or dividend from the investments made with any other Co- operative Bank is allowable as deduction under section 80P(2)(d) of the Act, or not". 5.3 The Hon‟ble Co-ordinate Benches of the Tribunal in various cases including in Belgaum Coal and Coke Consumer Co-operative Association Ltd. Vs. ITO in ITA No. 102/PAN/2018 decided on 06.04.2022, Nawbharat Darpan Co-operative Credit Society Ltd. Vs. CIT in ITA No. 5288 and 5289/Mum/2018 decided on 25.11.2021, Borivali Jan Kalyan Sahkari Patpedhi Ltd. Vs. ITO in ITA No. 5230/Mum/2019 decided on 30.03.2021 and in the case of Pathare Prabhu Co-operative Housing Society Ltd. Vs. ITO in ITA No. 1346 & 1347/(MUM) of 2023 decided on 27.07.2023 (2023) 153 taxmann.com 714 (Mum. Trib.) dealt with identical issue "as to whether the interest/dividend income earned from Co-operative Bank is allowable as deduction under section 80P(2)(d) of the Act or not" and ultimately allowed the deduction claimed as interest/dividend income earned from Co-o....
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....perative Banks registered under the Maharashtra Co-operative Societies Act and earned Interest, which was claimed as a deduction under section 80P(2)(d) of the Act. The AO denied the deduction under section 80P(2Xd) of the Act on the basis that the Co- operative Bank is covered under the provisions of section 80P(4) of the Act. We find that the Hon‟ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 123 taxmann.com 161/279 Taxman 75/431 ITR 1 while analysing the provisions of section 80P(4) of the Act held that section 80P(4) is a proviso to the main provision contained in section 80P(1) and (2) and excludes only Co-operative Banks, which are Co-operative Societies and also possesses a licence from RBI to do banking business. The Hon'ble Supreme Court further held that the limited object of section 80P(4) is to exclude Co- operative Banks that function at par with other commercial banks i.e. which lend money to members of the public. Thus, we are of the considered view that section 80P(4) of the Act is of relevance only in a case where the assessee, who is a Co-operative Bank, claims a deduction under section 80P of the Act which is not the facts of....
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....e aforesaid statutory provision, viz. sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society had been defined under sec. 2(19) of the Act, as under:- (19) "Co-operative society" means a cooperative 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;‟ We are of the considered view, that though the co-operative bank pursuant to the insertion of Sub-section (4) of sec. 80P would no more be entitled for claim of deduction under sec. 80P of the Act, but however, as a co-operative bank continues to be a co-operative society registered under the Co- operative Societies Act, 1912 (2 of 1912), or under any other law for the time being enforced in any state for the registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with a co- operative bank, would be entitled for claim of deduction under sec.80P(2)(d) of the Act." 13. We find that the learned CIT(A) has placed reliance upon the decision of the Hon'....