TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 323
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....-22. 2. It is observed that the assessee has filed the present appeal with a delay of 39 days beyond the period of limitation for which the assessee has filed an affidavit for condoning the said delay. On perusal of the same, we deem it fit to condone the delay for the reason that the assessee had 'sufficient cause' for the said delay. Delay condoned. 3. The solitary ground of appeal is the disallowance u/s. 80P(2)(d) of the Act of Rs. 2,27,780/- being the interest received from co-operative banks. 4. Brief facts of the case are that the assessee is a Co-operative Housing Society and had filed its return of income dated 30.12.2021, declaring total income at Rs. 4,18,400/- within the extended due date for filing of returns and the same wa....
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....nk Ltd. and Citizen Credit Co Op. Bank Ltd. 8. The learned Authorised Representative ('ld. AR' for short) for the assessee contended that the assessee societies's surplus is invested in fixed deposit in co-operative banks and the interest which are earned out of which are utilized for the future contingencies of repairs and replacement of old building of the society and the same are towards principle of mutuality. The ld. AR further stated that the decision in Totgars Co-operative Sale Society Ltd. (supra) is distinguishable on facts as there is no business income in the case of assessee. The ld. AR relied on a catena of decisions in support of the assessee's contentions. 9. The learned Departmental Representative ('ld. DR'....
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.... Act. We would place our reliance on the decision of the Hon'ble High Court of Gujarat in the case of Principal Commissioner of Income-tax v. Ashwinkumar Arban Co Operative Society Ltd. [2024] 168 taxmann.com 314 (Gujarat), which has extensively dealt with the issue in hand and had considered various decisions of the Hon'ble Apex Court in the case of Totgars Co-operative Sale Society Ltd. (supra) along with the decision of the Mavilayi Service Co-operative Bank vs. CIT, AIR 2021 Supreme Court 612. It is observed that the decision of the Hon'ble Karnataka High Court and the Hon'ble Apex Court in the case of Totgars Co-operative Sale Society Ltd. (supra) was with regard to the amendment to Section 194A(3)(v) of the Act which h....
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....he assessee and rather entire amount of profit and gains pertaining to the activities of the assessee are eligible for claiming deduction u/s. 80P(2) of the Act. It had categorically distinguished those co-operative banks which require license from the RBI for carrying on banking business as per Section 5(b) of the Banking Regulation Act which are the only co-operative banks to be excluded from the scope of the Section 80P(4) of the Act. It had summarized the various requirements for claiming deduction u/s. 80P(2) of the Act which we deem it fit to extract herein under for ease of reference: "14.3. While analysing Section 80P of the Act in depth, the following points were noted by this Court: (i) Firstly, the marginal note to Section 80....
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.... profits and gains attributable to such activity are also liable to be deducted, but subject to the cap specified in sub-clause (c). (viii) Eighthly, sub-clause (d) states that where interest or dividend income is derived by a co operative society from investments with other cooperative societies, the whole of such income is eligible for deduction, the object of the provision being furtherance of the co-operative movement as a whole. 14.4. In paragraph 42 of Mavilayi Service Co-operative Bank, this Court observed that the object and purpose of sub-section (4) of Section 80P is to exclude only co-operative banks that function on par with other commercial banks i.e. which lend money to members of the public. That on a reading of Section 3....