2024 (5) TMI 1459

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....f these appeals by the consolidated order for the sake of convenience. A.Y. 2017-18: 2. Briefly, the facts of the case for the A.Y. 2017-18 are that the appellant is a Cooperative Society established under the Maharashtra Co.op Societies Act, 1960. It is engaged in the business of providing credit facilities to its members. The Return of Income for the assessment year 2017-18 was filed on 25.10.2017 declaring Nil after claiming deductions under Chapter VIA of the Act. The case was selected for 'Limited Scrutiny' under Computer Assisted Scrutiny Selection (CASS). Statutory notices were served on the assessee. In absence of any response coming forth from the side of assessee, the Assessing Officer (AO) completed the assessment u/s. 144 ....

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....n u/s. 80P(2)(a)(i) or u/s 80P(2)(d) of the Act in respect of interest income earned from cooperative banks and nationalised banks. The issue is no more res integra by virtue of various decisions passed by the Pune Bench of the Tribunal. 8. The Co-ordinate Bench of the Tribunal in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA No. 84/PAN/2018 for A.Y. 2012-13 order dated 27.05.2022 held in favour of the appellant society. The relevant paragraphs of the said order of Co-ordinate Bench of the Tribunal (supra) is reproduced herein under :- "8. We heard the rival submissions and perused the material on record. The only issue in the present appeal is pertaining to ....

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....of the Hon'ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) and having noticed the divergent views of the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Co-op. Ltd. vs. ITO, 55 taxmann.com 447 and the Hon'ble Delhi High Court in the case of Mantola Cooperative Thrift Credit Society Ltd. vs. CIT, 50 taxmann.com 278, decision of the Hon'ble Delhi High Court in the case of Mantola Cooperative Thrift Credit Society Ltd. (supra) had not been preferred to view of the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Co-op. Ltd. (supra). The relevant observation of the Pune Bench of the Tribunal in the case (supra) is as under :- "9. The Pune Benches ....

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....d, we find that the issue in that case was the eligibility of deduction u/s. 80P(2)(d) of the Act on interest earned by the assessee co-operative society on investments made in co-operative banks. In that case, the assessee was engaged in the activity of marketing agricultural produce by its members; accepting deposits from its members and providing credit facility to its members; running stores, rice mills, live stocks, van section, medical shops, lodging, plying and hiring of goods and carriage etc. It was in that background of the facts that the Hon'ble High Court held that the assessee could not claim deduction u/s. 80P(2)(d) of the Act. When we consider the impact of this decision, it turns out that the same is not germane to case ....