TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 637
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....passed by the CPC, by filing first appeal before the Ld. Addl/JCIT (Appeal). The Ld. Addl./JCIT (Appeal)-2, Guwahati affirmed the aforesaid addition mainly on the reason that according to the provisions of section 80AC of the Act, no such deduction shall be allowed, unless the Assessee furnishes a return of income for such assessment year on or before the due dates specified u/s 139(1) of the Act. Here in the instant case, the Assessee had filed its return of income on 21.10.2019 as against the due date i.e. 30-009-2019 as prescribed by the CBDT and therefore the Assessee has failed to satisfy the conditions laid down in section 80AC of the Act for the impugned assessment year. Consequently, the Assessing Officer (AO) affirmed the intimation/order issued by the CPC. 3. The Assessee, before this Court, at the outset has demonstrated from the order dated 27.09.2019 u/s 119 of the Act that the due date for filing of income tax returns as well as all reports of audit which were required to be filed by the specified dates as prescribed, was extended from 30.09.2019 to 31-10-2019. For clarity and brevity, the order dated 27.09.2019 u/s 119 of the Act is reproduced herein below: 4. ....
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....o conditions are required to be cumulatively satisfied- (i) income by way of interest or dividend is earned by the Cooperative Society from the investments, and (ii) such investments should be with any other Co-operative Society. Further, the term „co-operative society‟ is defined under section 2(19) of the Act as under: "(19) "co-operative society" means a co-operative 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 ; 11. In the present case, there is no dispute that the assessee is a Co-Operative Housing Society. Thus, if any income as referred to in sub-section (2) to section 80P of the Act is included in the gross total income of the assessee, the same shall be allowed as a deduction. It is pertinent to note that since the assessee is registered under the Maharashtra Co-operative Societies Act, 1960, it is required to invest or deposit its funds in one of the modes provided in section 70 of the aforesaid Act, which includes investment or deposit of funds in the District Central Co-operative Bank or the State Coop....
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....computing the total income of the assessee. We may herein observe, that what is relevant for claim of deduction under Sec. 80P(2)(d) is that the interest income should have been derived from the investments made by the assessee co-operative society with any other cooperative society. We though are in agreement with the observations of the lower authorities that with the insertion of Sub-section (4) of Sec. 80P, vide the Finance Act, 2006, with effect from 01.04.2007, the provisions of Sec. 80P would no more be applicable in relation to any co-operative bank, other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank, but however, are unable to subscribe to their view that the same shall also jeopardise the claim of deduction of a cooperative society under Sec. 80P(2)(d) in respect of the interest income on their investments parked with a co-operative bank. We have given a thoughtful consideration to the issue before us and are of the considered view that as long as it is proved that the interest income is being derived by a cooperative society from its investments made with any other cooperative society, the claim of deduction....
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....judgment of the Hon'ble Supreme Court in CIT v. Vegetable Products Ltd., [1972] 88 ITR 192. In the aforesaid decision, the Hon'ble Supreme Court has laid down a principle that "if two reasonable constructions of a taxing provisions are possible, that construction which favours the assessee must be adopted". 14. Therefore, in view of the above, we uphold the plea of the assessee and direct the AO to grant the deduction under section 80P(2)(d) of the Act to the assessee in respect of interest income earned from investment with Cooperative Banks. Accordingly, we set aside the impugned order passed by the learned CIT(A) for the assessment year 2018-19. As a result, grounds raised by the assessee are allowed." 6. As the issue is covered as observed above, hence in view of the judgments including in the case referred above, this Court is inclined to allow the claim of the Assessee, as claimed u/s 80P(2)(d) of the Act, thus the same is allowed and the addition is deleted. 7. In the result, the appeal filed by the Assessee stands allowed. Order pronounced in the open court on 22.01.2025 ============= Document 1 F. No. 225/157/2019/ITA.Il Government of India M....