TaxTMI 
TaxTMI 
2025 (1) TMI 1637
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....celess Appeal Centre (NFAC), Delhi, vide order dated 10.05.2024 for the Assessment Years 2016-17 & 2017-18. Since the issue involved in these two appeals are common, we extract the grounds of appeal raised in ITA No.1348/Ahd/2024 for AY 2016-17 for the purpose of adjudication. 2. The Assessee has taken the following grounds of appeal:- 1.0 Assessment Order passed u/s.147 r.w.s 144B of the Act is bad-in-law: 1.01 On the facts and in the circumstances of the case and in law, the order passed by Ld.AO is bad in law in as much as the reopening of an assessment completed u/s.143(3) of the Act is without jurisdiction and is based on a mere change of opinion. 1.02 Your appellant further submits that it had disclosed f....
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.... The issue of taxability of interest earned on the deposits in the saving bank account maintained with Co-operative bank is deductible u/s.80(P) or not stand adjudicated by various Judgments of the Hon'ble High Court and orders of the Tribunal. 4. The undisputable facts relevant for adjudication of the issue are that the assessee is a primary Co-operative society engaged in providing in credit facilities to its members. The assessee had earned interest of Rs. XXX on FDs and savings from Co-operative banks namely Baroda Co-operative Central Bank, Mehsana Urban Co-operative Bank and Prime Co-operative Bank to mention a few, * Indian Oil Employees Welfare Co-operative Society Ltd.-ITA No.351/Mum/2023. * Salestax Employees ....
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...."[Deduction in respect of income of co-operative societies. 80P(1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in subsection (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. ITA Nos. 923-925/Ahd/2023 ACIT Vs. Gujarat State Co-op Hsg Fin Corn Ltd Asst. Year : 2013-14, 2014-15& 2017-18 - 3- (2) The sums referred to in sub-section (1) shall be the following, namely (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other cooperative society, the whole of s....
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....nvestment made with a cooperative bank under section 80P(2)(d) which was erroneous and prejudicial to Interest of revenue Tribunal reversed Principal Commissioner's order holding that cooperative bank was a cooperative society registered under Gujarat State Cooperative Societies Act and, therefore, 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 deduct....
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....ourt to the effect that the cooperative banks have been excluded from the definition of the cooperative societies by Finance Act, 2015 by ITA Nos. 923- 925/Ahd/2023 ACIT Vs. Gujarat State Co-op Hsg Fin Corn Ltd Asst. Year : 2013-14, 2014-15& 2017-18 - 5- amending section 194A(3)(v) is concerned, on perusal of section 194A (3), it appears that it provides for exemption from deducting Tax Deducted at Source 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 coop....
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....e case and the Principal Commissioner was not justified in invoking revisional powers under section 263 which is rightly reversed by the Tribunal holding that the cooperative bank is a cooperative society registered under the Gujarat State Cooperative Societies Act and in view of the various decisions of the Court, the Tribunal after following the same has ITA Nos. 923-925/Ahd/2023 ACIT Vs. Gujarat State Co-op Hsg Fin Corn Ltd Asst. Year : 2013-14, 2014-15& 2017-18 - 6- come to the conclusion that the assessment was not erroneous allowing deduction of section 80P(2)(d) which is in consonance with the various decisions of the Court as a twin condition invoking section 263 as to the assessment being erroneous and prejudicial to the i....