2025 (10) TMI 770

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..... 2. The assessee is in appeal under Section 260A of the Income Tax Act, 1961 (for short, '1961 Act') challenging the order passed by the Income Tax Appellate Tribunal SMC 'C' Bench, Bengaluru (for short, 'the Tribunal') in ITA. No. 108/BANG/2023 dated 11.04.2023 for the assessment year 2017-18. 3. The following substantial questions of law are raised for consideration of this Court: "1. Whether on facts and circumstances of the case, the Tribunal was justified in coming to the conclusion that the interest derived by the Co-operative society from its investments was not with any other co-operative Society as required under Section 80P2(d)? 2. Whether for the purpose of Section 80P(2)(d) a Co-operative Bank should be ....

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....his Court in PCIT VS. TOTAGARS CO-OPERATIVE SALE SOCIETY ((2017) 78 TAXMANN.COM 169 (KARNATAKA) has held that the investment in Co-operative Bank is eligible for deduction under Section 80P(2)(d) of the Act. It is submitted that in the case of TOTAGARS COOPERATIVE SALE SOCIETY (supra) another decision is rendered by this Court on 16.06.2017 denying the claim under Section 80P(2)(d) of the Act. The Tribunal instead of applying the earlier judgment dated 05.01.2017 incorrectly applied the judgment dated 16.06.2017. Learned counsel further submits that the second judgment in TOTAGARS CO-OPERATIVE SALE SOCIETY (supra) is pending in appeal before the Hon'ble Apex Court. 7. Per contra, Sri. E.I. Sanmathi, learned senior standing counsel ap....

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....r District Co-operative Central Bank Ltd. A Co-operative Bank is a Co-operative Society registered under the Co-operative Societies Act, whether the Co-operative Society assumes the character of the Cooperative Bank depends on the activities carried on by it. 9. It is undisputed that the Mysore and Chamarajanagar District Co-operative Central Bank Ltd., has banking license issued by the Reserve Bank of India under the Banking Regulation Act and engaged in banking activities. Merely the Co-operative Bank is also a Co-operative Society, the investment in Co-operative Bank cannot be considered for deduction under Section 80P(2)(d) of the Act. In the light of the judgment in second TOTAGARS CO-OPERATIVE SALE SOCIETY (supra), dated 16.06.2017....