AI Drafter 
TaxTMI 
TaxTMI 
2024 (10) TMI 255
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....which in turn arisen out of order of assessment passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act for assessment year 2014-15 ['AY' hereinafter]. 2. Briefly stated facts born out of case records are; 2.1 The assessee is a credit co-operative society registered under the provisions of Maharashtra State Co-op. Societies Act and is engaged in the business of providing credit facilitates to its members. For the year under consideration the assessee earned interest income of Rs.8,42,280/- from fixed/term deposits held with various co-operative societies & cooperative banks. While framing the assessment u/s 147 r.w.s. 144 r.w.s. 144B of the Act, the Ld. AO after vouching the source of interest as from various co-operative societies & banks h....
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....)(a)(i) of the Act and (ii) alternatively since no portion of interest is earned from nationalised bank but from co-operative banks where these are registered as credit co-operative societies therefore eligible for deduction u/s 80P(2)(d) of the Act. Per Contra, the Ld. DR Mr Rajpurohit placed strong reliance on the impugned orders. 4. Heard rival common contentions against twin appeals; and subject to provision of rule 18 of ITAT-Rules, 1963 perused material placed on record, case laws relied upon by both the rival parties and considered the facts in light of settled legal position which are forewarned to parties. 5. The solitary issue in these appeals hinges around allowability of deduction u/s 80P(2) of the Act. We see strong force....
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....ness of providing credit facilities to its members, therefore the impugned interest earned by it out of liquid funds placed/invested with other co-operative banks qualifies the test laid in section 80P(2)(a)(i) of the Act, hence very much deductible. 6. Alternatively on perusal of section 80P(2)(d), it is ostensibly clear that interest & dividend income derived by one cooperative society from its investment held with other cooperative societies is eligible for deduction u/s 80P(2)(d) of the Act. For this purpose the chief determinant factor entitling a claim of deduction u/s 80P(2)(d) in the hands of assessee society is that, interest income should have been earned by it from an investment made with any other cooperative society register....
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....ative Thrift Credit Society Ltd. (supra) had not been preferred to ratio laid in 'Tumkur Merchants Souharda Credit Co-op. Ltd. (supra), the relevant observation of the coordinate bench are placed as under; "9. The Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016, dated 9-4-2019) decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014, dated 19-8-2015) has allowed similar deduction. In the said case, the Tribunal discussed the contrary views expressed by the Hon'ble Karnataka High Court in Tumkur Mercha....
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....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 under consideration in view of the position that the claim of the instant assessee is directly about the eligibility of deduction u/s. 80P(2)(a)(i) of the Act and not u/s. 80P(2)(d). Moreover, so many decisions relied on by the ld. AR amply go to prove that the view taken by the AO, cannot by any standard, be construed as not a possible view. We, therefore, hold that the ld. Pr. CIT was not justified in exercising the revisional power anent to interest income of Rs. 22,34,270/- earned on investments made with co....