2025 (2) TMI 1551

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....f appeal: 1. Natural Justice 1.1 The The Additional / Joint / Deputy / Assistant Commissioner of Income Tax / Income tax Officer, OF Assessment Unit, Income Tax Department ["the A.O."], erred in not granting proper, sufficient and adequate opportunity of being heard to the Appellant while framing the assessment / making the impugned additions. 1.2 It is submitted that in the facts and the circumstances of the case, and in law, the assessment so framed be held as bad and illegal, as the same is framed in breach of the principles of natural justice. WITHOUT PREJUDICE TO THE ABOVE 2.1 On the facts and circumstances of the case, and in law, the learned the A.O. erred in not allowing deduction of Rs. ....

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....istrict Cooperative Bank and Maharashtra State Cooperative Bank and thus claimed deduction u/s. 80P(2)(a)(i) of the Act, but the same was denied by the AO by holding that earning of interest from FDR is not an activity for advancement of cooperative movement, while relying upon the decision of Hon'ble Supreme Court in the case of Totagarh's Co-operative Sales Society Ltd Vs. ITO, 322 ITR 283 and other decisions quoted in the order of Ld. CIT(A). 6 After having heard the counsels at length, I found that the issue in the present appeal is squarely covered by the decision in following cases: a. The University of Mumbai Employees Co-op Credit Society Ltd Vs. ITO, ITA No. 450/Mum/2019, wherein the operative portion is reproduced here....

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....estments with other co- operative society/co-operative banks is entitled for deduction u/s. 80P(2)(a)(i) of the I.T. Act, 1961. Hence, we direct the Ld. AO to allow the benefit of deduction u/s. 80P(2)(a) (i) of the Act, in respect of interest and dividend earned from investments with other co-operative bank/societies. 8. In the result, appeal filed by the assessee is allowed. b. LG Power and Industrial Solutions Ltd Employees Co.Op credit Society Ltd, ITA No. 2044/Mum/2021, wherein the operative portion is reproduced herein below: 5. Both sides heard, orders of authorities below examined. Undisputedly the assessee has received interest and dividend income from deposits/investments with Co-operative Bank. The Asse....

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....ed. Accordingly, following the first decision of Hon'ble Karnataka High Court in the case of Totagars Co-operative Sale Society (supra) and the decision in the case of Hon'ble Gujarat High Court in the case of Vankar Sahakari Sangh (supra). I hold that the assessee is eligible to claim deduction under section 80P(2)(d) of the Act in respect interest / dividend income from co-operative bank. 9. The CIT(A) has placed reliance on the decision of Hon'ble Supreme Court of India in the case of Totgars Co-operative Sale Society Ltd. vs. ITO(supra) to disallow assessee's claim of deduction under section 80P(2)(d) of the Act. 1 find that the aforesaid decision is distinguishable on facts. In the said case assessee's clai....