2024 (6) TMI 1476

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.... engaged in the business of providing credit facilities to its members and accepting deposits from them. The Return of Income for the assessment year 2020-21 was filed on 18.12.2020 declaring Nil after claiming deduction of Rs.52,68,351/- u/s.80P(2)(a)(i). Against the said return of income, the assessment was completed by the AO vide order dated 17.09.2022 passed u/s.143(3) r.w.s.144B of the Act disallowing the deduction claimed u/s.80P(2)(a)(i). While doing so, the Assessing Officer had brought to tax the interest income of Rs.52,68,351/- earned on FDs with other co-operative banks holding that the said interest does not qualify for deduction. 3. Being aggrieved, an appeal was filed before the NFAC, who vide impugned order confirmed the....

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....The only issue in the present appeal is pertaining to the allowability of deduction under the provisions of section 80P(2)(d) of the Act. 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. In the present case, the reasoning given by the lower authorities for denial of exemption u/s 80P(2)(d) of the Act is that interest was received from cooperative bank h....

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.... (supra) is 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 Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of the Hon'ble Delhi High Court in Mantola Coope....