2024 (8) TMI 360

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....e Society Act, 1960. It is engaged in providing credit facilities to its members. The Return of Income for the assessment year 2020-21 was filed on 26.01.2021 declaring total income at Nil after claiming exemption u/s 80P(d)(a)(i) of the Income Tax Act, 1961 ('the Act') of Rs. 70,50,472-. The case was selected for complete scrutiny for verification of (i) Deduction from Total Income (Chapter VI-A (Business ITR) and (ii) Low income in comparison to very high investments appearing in balance sheet. Against the said return of income, the assessment was completed by the Assessing Officer vide order dated 27.09.2022 passed u/s 143(3) r.w.s. 144B of the Act determining total income at Rs. 58,93,710/-. While doing so, the Assessing Officer had bro....

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....)(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 the cooperative banks/commercial banks, there is a cleavage of judicial opinion among several High Courts on the issue of eligibility of this kind of income for exemption u/s. 80P(2)(a)(i) of the Act. The Hon'ble Punjab & Haryana High Court in the case of CIT vs. Punjab State Cooperative Federation of Housing Building Societies Ltd. 11 taxmann.com 448, the Hon'ble Gujarat High Court in the case of State Bank of India Vs. CIT 389 ITR 578 (Guj.), the Hon'ble Delhi High Court in the case of M....