2025 (6) TMI 1210

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....-21. 2. At the outset, it is noted that the appeal of the assessee is time barred by '95' days and the assessee has filed an affidavit explaining the cause for the delay. After going through the contents of the affidavit and the reason for condonation of delay, we find that there was a sufficient cause for the delay and therefore, we condone the delay and proceed to hear the appeal on merits. 3. The main grievance of the assessee is against the action of the Ld.CIT(A) confirming the action of the AO denying the deduction of interest income of Rs. 1,05,15,757/- from Central Co-operative Bank. 4. The brief facts are that the assessee is a Co-operative Society registered under the Tamil Nadu Co-operative Societies Act, 1983 which was formed....

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....Ld.AR is that assessee is entitled for 80P deduction on the interest income received from Central Co-operative Bank u/s. 80P(2)(d) of the Act, since said bank is primarily a Society and therefore, according to him, both the AO as well as the Ld.CIT(A) erred in disallowing it. In order to examine this issue, let us look into the relevant provisions of Sec.80P(2) of the Act, which reads as under: Deduction in respect of income of co-operative societies. 80P.(1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub- section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing....

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....operative Society, which in this case a Co-operative Society/Bank is eligible u/s. 80P(2)(d) of the Act, unless the Ld.CIT(A)/AO could show that the Co-operative Bank (from which assessee earned interest on its deposits) is not basically a Co-operative Society. Therefore, in the instant case, we are of the view that the deduction claimed by the assessee can't be denied; and for such a proposition, we rely on the decision of the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. & Others. V. CIT reported in [2021] 431 ITR 1 (SC). In the light of the aforesaid discussion, we hold that unless the assessee earns interest income from a Co-operative Bank which is not basically a Co-operative Society, the assessee can't b....