TaxTMI 
TaxTMI 
TaxTMI 
2025 (2) TMI 1226
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....(A) has erred in law and on facts in allowing the deduction u/s. 80P(2)(d) of IT Act of Rs42,72,004/- in respect of interest income received from various Co-operative Banks without considering that the assessee has invested surplus funds like a ordinary investor and it has to be taxed as Income from other sources. ? (b) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs 97,45,404/-made by AO in respect of increase in loans and advance which is shown as asset in balance sheet u/s. 68 of IT Act without appreciating the fact that the assessee has not furnished supporting evidences/documents to substantiated the increase in loans and advances? (c) The Ld. CIT(A) has erred in law and on facts in admitting the additio....
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....id bank was eligible for deduction under section 80P(2)(d) - Whether deduction under section 80P(2)(d) is available to cooperative societies on income earned as interest on investment made with cooperative bank which in turn, is a cooperative society itself - Held, yes - Whether exclusion of applicability of section 80P to cooperative banks by section 80P(4) would not disentitle assessee from claiming deduction under section 80P(2)(d) in absence of any amendment in said section - Held, yes - Whether thus, provisions of section 80P(2)(d) would be applicable to instant case and Principal Commissioner was not justified in invoking revisional powers under section 263 which was rightly reversed by Tribunal - Held, yes [In favour of assessee) &....
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....rities as the cooperative societies other than cooperative banks meaning thereby that the cooperative banks are liable to deduct TDS from the interest other than interest on securities. Therefore it cannot be said that cooperative banks are excluded from the definition of cooperative societies by such an amendment. [Para 29] ● Moreover, as reliance placed on the aforesaid decision for applicability of section 80P(4) in the facts of the case is also not possible to accept as section 80P(4) would be applicable to the cooperative bank when the cooperative bank is liable to pay tax under the provisions of the Act and in such eventuality, the provision of section 80P would not be applicable as per the amendment of sub-section (4) of sect....
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....rious decisions of the Court as a twin condition invoking section 263 as to the assessment being erroneous and prejudicial to the interest of the revenue are not being fulfilled. [Para 33] ● In view of the foregoing reasons the question is answered in favour of the assessee and against the revenue. Tax Appeals being devoid of any merit are dismissed [Para 34]." Respectfully following the order of the Hon'ble jurisdictional High Court, the ground No.1 raised by the Revenue in this appeal is dismissed. 4. Addition of Rs 97,45,404/- u/s. 68 : The Assessing Officer made an addition of Rs.97,45,404/- appearing in the balance sheet under the head "loans and advances" on the ground that the assessee has not furnished supporting evid....