TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1023
X X X X Extracts X X X X
X X X X Extracts X X X X
....he impugned order was emanated from the order of the Learned Income-tax Officer 17(2)(2), Mumbai (in short the "Ld. AO") passed under section 143(3) of the Act, date of order 16/12/2019. 2. The assessee has raised the following grounds of appeal:- "1. On the facts and circumstances of the case and in law, it be held the Ld.CIT(A) has erred in confirming the order of Ld.AO disallowing deduction of Rs. 10,87,877/- under section 80P of the Income-tax Act. It be held that the appellant is eligible for such deduction and appellant be granted just and proper relief in this respect. 2. On the facts and circumstances of the case and in law, it be held the Ld.CIT(A) has erred in confirming the order of the Ld.AO disallowing deduction under sec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r section 80P(2)(d) of the Act. During assessment, the assessee claimed that the assessee is a co-operative society to be an entity registered under Co-operative Societies' Act, 1912 and assessee is eligible for deduction under Chapter VIA under section 80P(2)(d) of the Act. The Ld.AO during the assessment observed that the assessee is contravening the provisions of section 80P(4) of the Act and the co-operative society is not eligible for deduction of interest from co-operative banks under section 80P(2)(d) of the Act. He explained that the primary agricultural credit society is only eligible for this deduction. But the assessee considered these co-operative banks as co-operative credit societies relying on the order of the Hon'ble Apex Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... were not allowed to the appellant. The Ld. AR distinguished that inference drawn in the instant matter as compared to the matter relied upon by Ld.CIT(A) in pronouncement of his Order. In the matter of Katlary Kariyana Merchant Sahkari Sarafi Mandali Ltd (supra) the facts were that the Appellant had received interest income from both Co-operative Banks as well as Nationalised Bank and the same was claimed as deduction u/s 80P(2)(d).Whereas in the instant case, the assessee has received interest only from Co operative Banks. Section 80P(2)(d) provides for deduction of interest received by a Co-operative Society from another Co-operative Society. A Co-operative Society being a Co-operative Society fits into the permissible provisions of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ank which in turn, is a cooperative society itself. In the matter of PCIT v. Shree Madhi Vighag Khand Udyog Sahakari Mandli Ltd [2025] 171 tomann.com 22 (Gujarat), wherein it was held that the appellant being a cooperative society, earning interest on investment made with a cooperative bank and claiming deduction under section 80P(2)(d), deduction was to be allowed under section 80P(2)(d). 8. Further the Ld. AR respectfully relied on the order of the Hon'ble Supreme Court in PCIT Vs Annasaheb Patil MathadiKamgarSahakariPathpedi Limited, Civil Appeal No. 8719/2022 dated 20/04/2023 it is held that, "............Even otherwise, on merits also and taking into consideration the CBDT Circulars and even the definition of Bank under the B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....loyees Mutually Aided Co-op. Credit Society v) (2014) 52 Taxmann.com 104 (Bang. Trib) Shree Laxmananda Multipurpose Co-op Soc. Ltd. vi) ITA no.644/Mum/2017 (Assessment Year: 2013-14) Income Tax Officer Ward-20(2)(2), Mumbai vs M/s. Mazgaon Dock Employees Co. Op. Credit Society Ltd dated 27.06.2018 vii) LT.A. No. 3048/Mum/2016 (Assessment Year: 2012-13) ITO 20(2)(2) vs M/s Mazgaon Dock Employees Co-op. Credit Society Ltd. dated 28/02/2018 viii) ITA No.62/MUM/2024 Assessment Year 2017-18 & ITA No. 165/MUM/2024 Assessment Year: 2020-21-Income Tax Officer-28.3.1, Mumbai vs Vaibhav Co-op Credit Society dated 29.05.2024 9. In our considered view the issue is well settled by the order of the Hon'ble Supreme Court. The revenue has restric....