2024 (12) TMI 1647

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....sue involved in all three appeals are identical, they were heard together and are being disposed of vide this common order. 2. The solitary grievance raised by the Revenue in all these appeals is as under :- "CIT(A) has erred in allowing the disallowance u/s 80P(2)(d) of the I.T. Act of Rs.3,57,16,601/- (AY 2013-14) Rs.2,36,50,687/- (AY 2014- 15) and Rs.10,69,52,357/- (AY 2017-18) being interest received from GSC Bank Ltd. when interest earned from investment made in any bank, not being co-operative society is not deductible under Section80P(2)(d)." 3. Heard the arguments of both the parties and perused the material available before us. In these cases, the order for the relevant Assessment Years, i.e. 2013-14, 2014-15 and 201....

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.... such income;" 7. In this case, the undisputed facts are as under:- ● The assessee is a Co-operative Society, ● The assessee had deposits as FDs in GSCB, ● The assessee earned income as interest, ● The GSCB is a Co-operative Society as per Co-operative Societies Act, registered in 1960 with registration No. 560 under Urban Cooperative Bank, ● Thus, the assessee who is a co-operative society earned interest out of the FDs made in another co-operative society. 8. The only legal issue involved in this case is that whether the assessee is eligible for deduction u/s 80P(2)(d) of the Act on the interest earned on Fixed Deposits made in a Co-operative Bank (GSCB) or n....

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....f section 80P(2)(d) would be applicable to instant case and Principal Commissioner was not justified in invoking revisional powers under section 263 which was rightly reversed by Tribunal - Held, yes [In favour of assessee) *** ● The controversy sought to be canvassed with regard to deduction under section 80P(2)(d) is no more res integra in view of the decision of this Court in case of Katlary Kariyana Merchant Sahkari Sarafi Mandali Ltd. v Asstt. Commissioner of Income Tax [2022] 140 taxmann.com 602 (Guj.) as well as in case of State Bank of India v Commissioner of Income Tax (2018) 389 ITR 578 (Guj.) wherein it was held that the deduction under section 80P(2)(d) is available to the cooperative societies on the inc....

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....n 80P(4) would be applicable to the cooperative bank when the cooperative bank is liable to pay tax under the provisions of the Act and in such eventuality, the provision of section 80P would not be applicable as per the amendment of sub-section (4) of section 80P. Therefore, the exclusion of applicability of section 80P to cooperative banks by section 80P (4) would not disentitle the respondent-assessee from claiming deduction under section 80P(2)(d) in absence of any amendment in the said section and that would not be sufficient to deny the claim of the respondent-assessee for deduction of interest earned from investment made in a cooperative bank which is also a cooperative society from the total income. [Para 30] ● The Ap....