TaxTMI 
TaxTMI 
2026 (3) TMI 453
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....above captioned appeals of the assessee, therefore, we proceed to dispose of the same by this common order. ITA No.1698/PUN/2025, A.Y. 2017-18 : 3. The assessee has raised the following grounds of appeal :- "1. On the facts and circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) has erred in confirming the disallowance of deduction of Rs. 10,65,462/- u/s 80P(2)(d) of the Income Tax Act made by the Assessing Officer in respect of the interest of Rs. 9,99,936/- and Dividend of Rs. 65,526/- earned by the assessee Co-operative Society from deposits with Co-operative Banks. 1.1 On the facts and circumstances of the case and in law the Ld. Commissioner o....
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....k. The assessee in response to above notice relied on the decision passed in the case of Shri APD Jain Pathshala Sevekanchi Sahakari Patsanstha Limited, since according to the assessee the facts of above case were identical to the facts of the case of the assessee. However, the Assessing Officer by relying on Hon'ble Supreme Court's decision in the case of Totgars Cooperative Sales Society Limited vs. ITO, 322 ITR 283 (SC) disallowed the deduction of Rs. 10,65,462/- claimed by the assessee u/s 80P(2)(d) of the IT Act and vide order dated 29.03.2023 passed the assessment order u/s 143(3) r.w.s. 263 of the Act by determining taxable income at Rs. 10,65,460/- as against Rs. Nil income returned by the assessee. 5. Being aggrieved with the ab....
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....including the copy of case laws furnished by the assessee. In this regard, we find that an identical issue came up before this Tribunal in assessee's own case for assessment year 2018-19 in ITA No.1697/PUN/2025 and the Tribunal vide order dated 01.09.2025 following the recent decision of coordinate bench of this Tribunal in the case of Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal vs. ITO in ITA No.313/PUN/2025 order dated 07.05.2025 has allowed the appeal of the assessee by observing as under :- "5. We have heard rival contentions and perused the record placed before us. In the assessment proceedings of assessee which is a cooperative society for A.Y. 2018-19 completed on 23.02.2021, Ld. AO has disallowed the deduction u/s 8....
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.... with Cooperative Banks is eligible for deduction u/s.80P(2)(d) of the Act. Recently, this Bench in the case of Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal Vs. ITO in ITA No.313/PUN/2025, order dated 07.05.2025 has allowed the deduction claimed by the assessee u/s.80P(2)(d) of the Act observing as under : "5. We have heard the rival submissions and perused the record placed before us. There is no dispute to the fact that assessee has earned interest income of Rs. 1,02,95,103/- from deposits/investments with Cooperative Banks. This fact has been accepted by the Assessing Officer in the assessment onter also. Admittedly, assessee has not filed the requisite detala before Id. CITIA). We however considering the fact That the is....
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....e u/s.80P(2)(d) of the Act. We find that this Tribunal in case of Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd., Vs. ITO in ITA No. 1365/PUN/2023, dated 01.01.2024 dealing with similar issue after placing reliance on another decision of this Tribunal in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITῸ in ΠΑ No.84/PAN/2018, dated 27.05.2022 has held that the interest earned from deposits with Cooperative Banks are also eligible for deduction u/s.80P(2)(d) of the Act as Cooperative Banks are basically Cooperative Societies only but have turned into Bank on getting necessary banking license. 9. Respectfully following the abo....
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....direct the AO to allow the deduction u/s 80P(2)(d) of the Act at Rs. 10,89,512/- to the assessee for the income earned from Co-operative Banks. Effective grounds of appeal raised by the assessee are allowed. 7. In the result appeal of the assessee is allowed." 10. Respectfully following the above decision of the Tribunal in assessee's own case for assessment year 2018-19 (supra), we are of the considered opinion that the interest income and dividend income received from cooperative bank are entitled for deduction u/s 80P(2)(d) of the Act. Accordingly, we set-aside the order passed by Ld. CIT(A)/NFAC and direct the Assessing Officer to allow the deduction u/s 80P(2)(d) of the Act of Rs. 10,65,460/- (pertaining to interest income ....