TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 1606
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....ed second proviso to Section 153(1) of the Act, extending the time limit to pass the assessment order for A Y 2020- 21, came into force only from 01.04.2022 and not 31.03.2022, the assessment proceedings for A Y 2020-21 became time barred on 31.03.2022 in terms of the existing second proviso to Section 153(1) of the Act and, hence, the impugned assessment order dated 06.09.2022 being barred by limitation, ought to be annulled. 3) On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in upholding the denial of deduction by the Ld. Assessing Officer of Rs. 30,36,217/, being interest received by the assessee from cooperative banks u/s. 80P(2)(d) of the Act. 4) On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in holding that the assessee is a cooperative credit society when the assessee is a cooperative housing society. 5) On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in relying upon the decision of the Hon'ble Karnataka High Court in Pr. CIT v/s Totagars Cooperative Sale Society (395 ITR 611) to confirm the denial of deduction by the Ld. Assessing Officer u/s 80....
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.... Rs.30,36,217/-from its investments/deposits made with Saraswat Co-op Bank Ltd. & Mumbai District Central Coop Bank Ltd. On plain reading of section 80P(2)(d), it is clear that the deduction u/s 80P is available to the appellant. The Ld. AR also cited several decisions of the Co-ordinate benches of the ITAT, Mumbai in support of his claim. 6. On the other hand, the Ld. CIT DR has placed reliance on the order of the Ld.CIT (A) and the decision of the Hon'ble Karnataka High Court in the case of PCIT v/s Totagars Co-operative Sale Society (Supra). 7. We have heard rival submissions and carefully examined the facts of the case. It is seen that prior to the decision of the Hon'ble Karnataka High Court relied upon, the Hon'ble Karnataka High Court in PCIT v/s Totagars Co-operative Sale Society (2017) 392 ITR 74 have held that the amount of interest earned from co-operative society bank would be deductable u/s 80P(2)(d). Thus, there are divergent views of the same Hon'ble High Court on this issue. 8. The Co-ordinate Benches of the Tribunal in various decisions have consistently taken the view that in the case of a co-operative society, the income earned by way of interest income on the....
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....y, the assessee kept the deposits in Co-operative Banks registered under the Maharashtra Co-operative Societies Act and earned Interest, which was claimed as a deduction under section 80P(2)(d) of the Act. The AO denied the deduction under section 80P(2Xd) of the Act on the basis that the Co- operative Bank is covered under the provisions of section 80P(4) of the Act. We find that the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 123 taxmann.com 161/279 Taxman 75/431 ITR 1 while analysing the provisions of section 80P(4) of the Act held that section 80P(4) is a proviso to the main provision contained in section 80P(1) and (2) and excludes only Co-operative Banks, which are Co-operative Societies and also possesses a licence from RBI to do banking business. The Hon'ble Supreme Court further held that the limited object of section 80P(4) is to exclude Co- operative Banks that function at par with other commercial banks i.e. which lend money to members of the public. Thus, we are of the considered view that section 80P(4) of the Act is of relevance only in a case where the assessee, who is a Co-operative Bank, claims a deduction under section 8....
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....the claim of deduction under the aforesaid statutory provision, viz. sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society had been defined under sec. 2(19) of the Act, as under:- '(19) "Co-operative society" means a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state for the registration of co-operative societies;' We are of the considered view, that though the co-operative bank pursuant to the insertion of Sub-section (4) of sec. 80P would no more be entitled for claim of deduction under sec. 80P of the Act, but however, as a co-operative bank continues to be a co- operative society registered under the Co- operative Societies Act, 1912 (2 of 1912), or under any other law for the time being enforced in any state for the registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank, would be entitled for claim of deduction under sec. 80P(2)(d) of the Act." 13. We find that the learned CIT (A) has placed reliance upon the decisi....