2025 (8) TMI 543

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....mpugned order emanated from the order of the Assessment Unit, Income-tax Department [in short, "the Ld.AO"] passed under section 143(3) read with section 144B, date of order 20/09/2022. 2. The brief facts of the case are that the assessee is a society and has filed the return of income for impugned assessment year admitting taxable income at Nil. The return was processed under section 143(1) of the Act. Subsequently, the case was selected for complete scrutiny under CASS to verify - (i) High creditors / liabilities; and (ii) deduction from Total Income under Chapter VI-A. The Ld.AO issued notice and completed assessment after duly verifying the deduction claimed under section 80P of the Act. The assessee claimed deduction U/s 80P(2)(d) o....

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....ion 263 considered that the interest earned from investment in co-operative bank is not eligible for deduction U/s 80P(2)(d) of the Act and the alleged amount is taxable income. The Ld. PCIT relied on the order of Hon'ble Supreme Court in the case of Totagar's Cooperative Sales Society vs ITO, Karnataka 322 ITR 283 (SC), date of order 08/02/2010. So, accordingly, the interest earned amount to Rs. 43,67,941/- is treated as income of the society and the impugned assessment order is considered as erroneous and prejudicial to the interest of the revenue. 3. The Ld. DR argued and stands in favour of the order of the Ld. PCIT. 4. We have heard the rival submissions and perused the documents available on record. On careful consideration, we ....

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.... controversy sought to be canvassed with regard to deduction under section 80P(2)(d) of the Act is no more res integra in view of the decision of this Court in the case of Katlary Kariyana Merchant Sahkari Sarafi Mandali Ltd. (supra) as well as State Bank of India (supra), wherein it was held that the deduction under section 80P(2)(d) of the Act is available to co-operative societies on the income earned as interest from investments made with a co-operative bank, which, in turn, is a co-operative society." Further reliance has also been placed on the judgment of the Hon'ble Supreme Court in PCIT v. Annasaheb Patil Mathadi Kamgar Sahakari Pathpedi Limited, Civil Appeal No. 8719 of 2022, dated 20.04.2023, wherein it was held as under: ....