2024 (9) TMI 365

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....ppellant is a Consumer Cooperative Credit Society formed under the Maharashtra Cooperative Societies Act, 1960. It is engaged in the business of retail sale of Food items etc. The Return of Income for the A.Y. 2020-21 was filed declaring Nil income after claiming exemption u/s. 80P of the Act. Against the said return of income, the assessment was completed by the Assessing Officer (AO) vide order dated 09.09.2022 passed u/s. 143(3) r.w.s.144B of the Act at a total income of Rs. 32,42,385/-. While doing so, the AO brought to tax the interest income of Rs. 32,42,385/- earned on deposits made out of surplus funds with Cooperative bank by holding that the interest earned from cooperative banks does not qualify for exemption either u/s. 80P(2)(c....

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....esentative. 6. We heard the ld. Sr. DR and perused the material on record. At the first instance, we shall deal with the issue : Whether or not the ld. NFAC was justified in refusing to condone the delay of 90 days in filing the appeal. We have carefully perused the reasons given for the delay in filing the appeal before the ld. NFAC which are extracted vide para 3.4 of the impugned order and also the reasons given by the ld. NFAC for not condoning the delay. The ld. NFAC relied upon certain judicial precedents in support of the proposition that in the absence of any "sufficient cause" for the delay, the delay need not be condoned. There can be absolutely no quarrel about this proposition of law, but the ld. NFAC had nowhere discussed as....

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....est income was earned on deposits made with a Cooperative Banks. On perusal of provisions of section 80P(2)(d), it is clear that the income derived by a cooperative society from its investment held with other cooperative societies shall be exempt from the total income of a cooperative society. Therefore, what is relevant for claiming of deduction u/s 80P(2)(d) is that interest income should have been derived from the investment made by the assessee cooperative society with any other cooperative society. This issue was considered by the Hon'ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon'ble High Court after referring to the decision of the Hon'ble Supreme Court in the case....