TaxTMI 
TaxTMI 
2025 (2) TMI 1609
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.... In the facts and circumstances of the case and in law, the learned Commissioner of Income Tax(A) erred in confirming the same by rejecting written submissions and several judgments cited before him. 3. In the facts and circumstances of the case and in law, the learned A.O. erred in wrong charging interest u/s 234A, B & C and levying penalty u/s 270A. [B] Relief Prayed: The appellant therefore prays Your Honour; 1) To allow the deduction of Rs. 46,13,533/- claimed u/s 80P(2)(d). 2) To delete the interest u/s 234A, B & C and penalty u/s 270A. [C] General:- * The appellant reserves rights to add alter or delete any portion of this appeal before its conclusion. * This appeal is filed late and the delay may please be condoned. * A Detailed paper book along with case laws will be submitted at the time of hearing. 2.1. Sole grievance of assessee is against the denial of deduction of Rs. 46,13,533/- claimed under section 80P(2)(d) of the Act on the interest income earned on Time Deposits maintained with Co-operative Banks. 2.2. There is a delay of 373 days in filing the present appeal for which petition....
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....13,533/- was claimed as a deduction u/s.80P(2)(d). Sr. No. Particulars Amount (Rs.) 1. Bassien Catholic Co-op. Bank Ltd. 81,08,514 2. Apna Sahakari Bank Ltd. 6,11,803 3. Abhuday Co-op Bank 1,74,058 4. Municipal Co-op Bank 60,63,891 5. Thane Dist. Co-op Bank (Saving Account) 2,380 6. Bassien Catholic Co-op. Bank Ltd. (Saving Account) 1,26,857 7. Thane Dist. Co-op Bank (Reserve Fund Deposit) 8,33,478 8. Bassien Catholic Co-op Bank (Loan Provision Deposit) 3,300 9. Bassien Catholic Co-op Bank (Sulabh Account) 552 10. Thane Dist. Co-op Bank 54,493,00 Total 1,59,79,326 5. We find that while deciding a similar issue, the Coordinate Bench of ITAT, Mumbai in the case of Pathare Prabhu Co-operative Housing Society v/s ITO, (2023) 202 ITD 464 (Mum-Trib), held that interest income earned from investment with Co-operative Bank is eligible for deduction under section 80P(2)(d) of the Act. The relevant findings of the Coordinate Bench, in the aforesaid decision, are reproduced as follows: - "8. We have considered the submissions of both sides and perused the material ava....
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....tment or deposit of funds in the District Central Co-operative Bank or the State Co-operative Bank. Accordingly, the assessee kept the deposits in Co-operative Banks registered under the Maharashtra Co-operative Societies Act and earned interest, which was claimed as a deduction under section 80P(2)(d) of the Act. The AO denied the deduction under section 80P(2)(d) of the Act on the basis that the Cooperative Bank is covered under the provisions of section 80P(4) of the Act. We find that the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 123 taxmann.com 161/279 Taxman 75/431 ITR 1 while analysing the provisions of section 80P(4) of the Act held that section 80P(4) is a proviso to the main provision contained in section 80P(1) and (2) and excludes only Co-operative Banks, which are Co-operative Societies and also possesses a licence from RBI to do banking business. The Hon'ble Supreme Court further held that the limited object of section 80P(4) is to exclude Cooperative Banks that function at par with other commercial banks i.e. which lend money to members of the public. Thus, we are of the considered view that section 80P(4) of the Act is of ....
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....come is being derived by a co-operative society from its investments made with any other co-operative society, the claim of deduction under the aforesaid statutory provision, viz. sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society' had been defined under sec. 2(19) of the Act, as under:- '(19) "Co-operative society" means a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state for the registration of co-operative societies;' We are of the considered view, that though the co-operative bank pursuant to the insertion of Sub-section (4) of sec. 80P would no more be entitled for claim of deduction under sec. 80P of the Act, but however, as a co-operative bank continues to be a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being enforced in any state for the registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with a cooperative bank, would be entitled for cla....