TaxTMI 
TaxTMI 
2025 (11) TMI 1590
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....members. It filed its return of income on 13.10.2018 declaring total income of Nil. The case was selected for limited scrutiny under CASS. Accordingly statutory notices u/s 143(2) and 142(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') were issued and served on the assessee in response to which the assessee filed the requisite details from time to time. During the course of assessment proceedings the Assessing Officer noted that the assessee has shown to have received interest amount of Rs. 1,27,28,099/- from bank investment, the details of which are as under: Particulars Amount Received Amount Receivable Total Interest on Fixed Deposits received from 20,62,227 13,00,839 33,63,066 Dombivli Na....
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....llowing Judgement: 1. Hon'ble Gujrat High Court in the case of State Bank of India vs. CIT (206) 72 taxman.com 64 ( Gujrat) 2. Hon'ble Supreme Court in the case of Totgar's Co-operative Sale Society Ltd. Vs. ITO (2010)322 ITR 283/188 Taxman 282 (SC) 7. Deduction U/s 80P(2)(d) of the I.T. Act 1961 is allowable in respect of any income by way of interest or dividends derived by the co-operative society from its investment with any other co-operative society. In this case assessee has claimed deduction on interest received from investment in co-operative bank. 8. Considering the above discussion the interest received from investment in co-operative bank amounting to Rs.1,27,28,099/- is not allowa....
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....ating the fact that the learned A.O. was not justified in disallowing the deduction of Rs. 1,27,28,099/-, claimed u/s 80P in respect of the interest income earned by the assessee from investment in other co-operative banks and hence, the claim made by the assessee should have been allowed. 3] The learned CIT(A) failed to appreciate that the assessee has invested funds in the course of its business of providing credit facilities to its members and accordingly, the deduction u/s 80P(2)(a)(i) was allowable to the assessee in respect of the above referred interest income earned by it. 4] The learned CIT(A) further erred in not appreciating that the interest income of Rs. 1,27,28,099/- was earned from the deposits/investments w....
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....rative banks, the reasons of which have already been reproduced in the preceding paragraphs. We find in appeal the Ld. CIT(A)/NFAC sustained the addition made by the Assessing Officer. 9. We find an identical issue has already been decided by the Co-ordinate Bench of the Tribunal in assessee's own case for assessment year 2020-21 vide ITA No. 2471/PUN/2024 order dated 24.03.2025. The Tribunal while allowing the claim of deduction u/s 80P(2)(d) of the Act has observed as under: "7. We have heard both the sides and perused the record placed before us. In the instant case, the Assessing Officer disallowed the interest income of Rs. 1,63,98,998/- earned out of the Fixed deposits/Investments made with Cooperative Banks treating the s....
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....sions taking consistent view along with considering the facts of the case, where the assessee made investment with the Cooperative Banks we hold that the assessee is eligible for deduction u/s.80P(2)(d) of the Act for the interest income earned from Cooperative Banks at Rs. 1,63,98,998/-. Findings of the ld. CIT(A) is set-aside and the Assessing Officer is directed to allow the claim made by the assessee. Effective grounds of appeal raised by the assessee are allowed." 10. We find following the above decision the Tribunal again in assessee's own case for assessment year 2013-14 vide ITA No. 313/PUN/2025 order dated 07.05.2025 has allowed the claim of deduction u/s 80P(2)(d) of the Act in respect of the interest earned from the fixed depo....