2024 (11) TMI 1533

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....aken following grounds of appeal:- "1.1 The order passed by U/s.250 passed on 24-05-2024 by NFAC [CIT(A)], Delhi (for short "CIT(A)" upholding the disallowance of deduction u/s 80P(2)(d) of Rs. 10,23,047/- is wholly illegal, unlawful and against the principles of natural justice. 1.2 The ld. CIT(A) has failed to appreciate that there was a sufficient cause for failure to respond to the notices alleged to be issued for hearing u/s 250 of the Act. 2.1 The ld. CIT(A) has grievously erred in law and or on facts in upholding the disallowance of deduction u/s 80P(2)(d) of Rs.10,23,047/-. 3.2 That the in the facts and circumstances of the ld. CIT(A), ought not to have upheld the disallowance of deduction u/s 80P....

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....ore, interest earned by assessee from said bank was eligible for deduction under section 80P(2)(d) - Whether deduction under section 80P(2)(d) is available to cooperative societies on income earned as interest on investment made with cooperative bank which in turn, is a cooperative society itself - Held, yes - Whether exclusion of applicability of section 80P to cooperative banks by section 80P(4) would not disentitle assessee from claiming deduction under section 80P(2)(d) in absence of any amendment in said section - Held, yes - Whether thus, provisions of 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....

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....e from the income on interest other than interest on securities as the cooperative societies other than cooperative banks meaning thereby that the cooperative banks are liable to deduct TDS from the interest other than interest on securities. Therefore it cannot be said that cooperative banks are excluded from the definition of cooperative societies by such an amendment. [Para 29] ● Moreover, as reliance placed on the aforesaid decision for applicability of section 80P(4) in the facts of the case is also not possible to accept as section 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 n....