TaxTMI 
TaxTMI 
2023 (9) TMI 1515
X X X X Extracts X X X X
X X X X Extracts X X X X
....laimed u/s.80P(2)(d) of the Income Tax Act, 1961 of Rs. 26,48,946/- of the I.T. Act, 1961. 2. On the facts and in the circumstances of the case as well as the law on the subject, it is ought to have be held that the deduction u/s 80P(2)(d) of the Act be allowed to the co-operative society in respect of interest income received from co-operative banks, irrespective of the facts whether it is held as income from other sources or under any other source of income. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in initiating penalty proceedings u/s.274 r.w.s. 270A(1) of the Income Tax Act, 1961. 4. It is therefore prayed that the above addition may please be deleted as learned members of the Tribunal may deem it proper. 5. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal." 3. When this appeal was called out for hearing, Shri P. M. Jagasheth, Learned Counsel for the assessee invited my attention to the order dated 10.07.2023, passed by the Division Bench of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onnection therewith for the purpose of supplying them to its members, the whole of the amount of profits and gains of business attributable to any one or more of such activities : Provided that in the case of a co-operative society falling under subclause (vi), or sub-clause (vii), the rules and bye-laws of the society restrict the voting rights to the following classes of its members, namely:- (1) the individuals who contribute their labour or, as the case may be, carry on the fishing or allied activities; (2) the co-operative credit societies which provide financial assistance to the society; (3) the State Government; (b) in the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to- (i) a federal co-operative society, being a society engaged in the business of supplying milk, oilseeds, fruits, or vegetables, as the case may be; or (ii) the Government or a local authority; or (iii) a Government company11 as defined in section 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under a Central, State or Provincial Act (being a company or corporati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-operative Society has not been defined in section 80P or in clause 80P(2)(d). The word Co-operative Society should be interpretate in the same meaning for whole of the section 80P which also include 80P(2)(d). Therefore, the provisions of this section cannot be applicable to Co-operative Banks. The word Co-operative Society has been used in two time in clause 80P(2)(d). As per the rule of interpretation, the word Co-operative Society should be construed/interpreted in the same meaning for both words of Cooperative Society used in 80P(2)(d). In absence of any specific definition of Co-operative Society, mentioned in section SOP, the interpretation of both word (Co-operative Society) used in section 80P(2)(d) cannot be construed in two different meaning. If the first word of Co-operative Society used in the 80P(2)(d) has not included the Co-operative Bank in its meaning, then the later word used in 80P(2)(d) shall also not included Co-operative Bank in the meaning of Cooperative Society. The rule of interpretation of statue are very clear in this regard and accordingly to that if a particular word is used in different parts of a statute, there is a presumption that the word ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of deduction under section 80P(2)(d). On carful considerations of grounds of appeal and the facts of the case, we find that on similar grounds of appeal on similar set of facts, this combination has this Tribunal allowed similar relief to that assessee, thus in our view, the grounds of appeal raised by the assessee are square covered in favour of assessee and against the revenue. For completeness of order, the relevant part of decision in Bardoli Vibhag Gram Vikas Co-op Credit Society Ltd. (supra) is extracted below: "11. We have considered the rival submission of both the parties. We have also deliberated on the written submission filed by learned AR of the assessee and various case laws relied by him during his submission. We have also gone through the various documentary evidences filed in the form of paper book (PB) by learned AR of the assessee. We have noted that during the assessment the Assessing Officer vide notice under section 143(2)/142(1) of the Act dated 31-8-2015 and 13-4-2016. The assessee filed its reply through its CA (AR) and furnished required details and after examining the issue allowed the deductions under section 80P(2)(d) as discussed in para 4 of the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Co-operative Milk Producer Union Ltd., v. DCIT [2019] 111 taxmann.com 69 (Rajkot Tribunal) also held the assessee cooperative society could not claim benefit under section 80P(2)(d) in respect of interest earned by it from deposits made with nationalized/private banks, however, the said benefit was available in respect of interest earned and on deposits made with cooperative bank. Thus, in view of the aforesaid legal discussion we are of the considered view that order passed by Assessing Officer is not erroneous, though it may be prejudicial to the interest of the Revenue. Therefore, the twin conditions that orders is erroneous and so far as prejudicial to the interest of revenue, as prescribed under section 263 is not fulfilled in the present case. 17. Moreover, we have seen that in assessee's own case for A.Y. 2009-10, 2010-11 and 2012-13, the similar disallowance under section 80P(2)(d) was made by the assessing officer while passing assessment order under section 143(3), however, on appeal before Ld. CIT(A) , the disallowances were deleted and the order of the Ld. CIT(A) in all years were confirmed. 18. The ld. DR for the revenue relied on the case law in PCIT v. Totaga....