TaxTMI 
TaxTMI 
2025 (9) TMI 447
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, Delhi ["learned CIT(A)"], for the assessment year 2017-18. 2. In this appeal, the Revenue has raised the following grounds: - "(i) Whether on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in allowing deduction u/s 80P(2)(đ) of the I.T. Act. 1961, without appreciating legislative intent of the inserted provision of 80(P)(4) which specifically provides that section shall not apply in relation to any cooperative bank other than a primary agricultural credit society or primary cooperative agricultural and rural developer bank". (ii) On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in allowing deduction u/s 80P(2)(d) of the IT. Act, 1961, without con....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that provisions of section 80P does not apply to cooperative banks? (v) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the deduction u/s 80P(2)(d) of Rs. 1,90,42, 168/- even if the assessee earned the interest from Cooperative Bank which are not recognized as Co-operative Societies?" (vi) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the deduction u/s 80P(2)(d) of Rs. 1,90,42, 168/- even if Hon'ble Apex Court in the case of The Mavilayi Service Co-op Bank Ltd & Others Vs. CIT. Civil Appeals Nos. 7343-7350 of 2019 dt. 12-01-2021 held that interest earned from investments made in any bank, not being a cooperative s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioning of any cooperative society is the principles of mutuality, and these principles are not satisfied in the case of interest earned from co-operative banks by the cooperative society. The AO also placed reliance upon the decision of the Hon'ble Supreme Court in Totgar's Co-operative Sale Society Ltd. vs. ITO, reported in (2010) 188 Taxman 282 (SC). Accordingly, the AO disallowed the deduction of Rs. 1,90,42,168/- claimed by the assessee under section 80P(2)(d) of the Act in respect of interest received from the co-operative banks. 6. The learned CIT(A), vide impugned order, allowed the appeal filed by the assessee and deleted the disallowance of deduction claimed under section 80P(2)(d) of the Act by following the decisions of the Tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry issue against the department as follows : "12. Next is about allowing deduction u/s. 80P of the Act. During the assessment proceedings, the AO held that the society had violated the principles of mutuality, that the provisions of section SOP were not applicable to a Co-op. Housing Society that the assessee had made deposits out of money received against redevelopment agreement and from different channels, that same was not permissible under byelaws of the society, that it had transferred a sum of Rs. 2.97 crores from the corpus fund to the P&L account that such investment in banks would not qualify for deduction u/s. 80P of the Act Finally he denied the assessee the benefit of deduction u/s. 80P. 12.1. During the appell....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ifferent fields. The provisions of one sub section cannot be imported to another sub section. It is a fact that the Registrar of Co-op. Hsg. Society had not cancelled the registration of the Housing Society on the alleged violation of principle of mutuality or bye laws. In these circumstances, in our opinion the FAA has rightly held that deduction claimed by the assessee under sub-sections (d) and (c)(ii) cannot be denied the assessee. Upholding his order, we dismiss the ground raised by the AO. As a result, appeal filed by the assessee is partly allowed and the appeal of the AO is dismissed." The Revenue is fair enough in not pinpointing any specific distinction either on facts or on law in all these assessment years. Fac....