2024 (8) TMI 360

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...., AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi ['NFAC'] dated 20.03.2024 for the assessment year 2020-21. 2. Briefly, the facts of the case are that the appellant is a Cooperative society registered under the Maharashtra Cooperative Society Act, 1960. It is engaged in providing credit facilities to its members. The Return of....

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....holding that the said interest does not qualify for deduction u/s 80P(2)(a)(i) of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A)/NFAC, who vide impugned order confirmed the action of the Assessing Officer placing reliance on the decision of Hon'ble Supreme Court in the case of Totagar's Cooperative Sale Society Ltd. Vs. ITO (2010) 322 ITR 283 (SC) and the decision of Hon'ble K....

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....ubmissions and perused the material on record. The issue in the present appeal relates to the eligibility of the assessee for exemption u/s 80P(2)(a)(i) of the Act in respect of interest income earned from cooperative banks. 8. As regards, the issue as to the allowability of exemption under the provisions of section 80P(2)(a)(i) in respect of interest income earned by a cooperative society from t....

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.... Credit Society Ltd. 390 ITR 524 took a view that the income arising on the surplus invested in short term deposits and securities cannot be attributed to the activities of the society and, therefore, not eligible for exemption u/s. 80P(2)(a)(i) of the Act. However, the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 taxmann.com 309 ....