TaxTMI 
TaxTMI 
2025 (2) TMI 1677
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....ion of Learned 1 Assessing Officer in disallowing the deduction u/s.80P(2)(d) of the Income Tax Act, 1961 amounting to Rs. 27,19,303/- without considering the facts and circumstances of the case. 2. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in not allowing deduction of Rs. 50,000/- under section 80P(2)(c)(ii) of the Act against other income which is an independent deduction allowable, without considering the facts and circumstances of the case. 3. The appellant craves leave to add, amend, alter or delete the said ground of appeal. 3. As per the facts of the case, the assessee is a cooperative housing Society Limited. Since during the year under consideration the assessee had received interest from cooperative bank, therefore claimed deduction u/s 80P(2)(d) of the Act after claiming incidental expenses. But the same was denied vide assessment order passed u/s 143(3) of the Act dated 30.11.2019, consequently additions made. 4. Although, against the said order of assessment, assessee preferred appeal but the same was rejected by Ld. CIT(A) vide its order dated....
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....ion of Hon'ble Gujarat High Court in case of Katlary Kariyana Merchant Sahkari Sarfi Mandali Ltd Vs ACIT (327 CTR 138) in support of his contention. Thus he confirmed the action of the AO. 4. Before the Hon'ble Bench we submit as under: - i. According to the provisions of section 80P in case of a cooperative society the gross total income if it includes the income referred to in is subsection (2) then same shall be granted as a deduction subject to the conditions and to the extent of amount specified from the total income. In subsection 2, clause (d) provides that in respect of income by way of interest on dividend derived by the cooperative society from its investment with any other cooperative society the whole of such income is eligible for deduction. Therefore, if the cooperative society makes any investment in another cooperative societies and consequently on any interest or dividend earned from such investment total sum so earned is eligible for deduction. ii. Section 2(19) of the act defines cooperative society means a cooperative society registered under the cooperative societies act, 1912 or under any other law for the time being in force....
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....court is not a good practice and can not be sustained. In the case of Ashwinkumar Arban Co-operative Society Ltd (Supra) the Hon'ble Gujarat High Court after considering various decisions has held that interest received from Co-operative banks are eligible for deduction U/s 80P(2)(d) of the Act. Relevant part of the decision is as under: "33. In view of the above dictum of law as well as the provisions of the Act which are considered we are of the opinion that the provisions of section 80P(2)(d) would be applicable in the facts of the case and the PCIT was not justified in invoking revisional powers under section 263 of the Act 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 come to the conclusion that the assessment was not erroneous allowing deduction of section 80P(2)(d) of the Act 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 interest of the reve....
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....eduction 11. The controversy involved here is that the argument of the revenue is that when the assessee has made investment in another cooperative society copy then this deduction is allowable. Therefore according to the if amount is not investment trative society, the deduction is not eligible. The reden to the AO if the count is investment in a cooperative bank which is different from cooperative societies or the says that cooperative societies and therefore the assessee is not entitled to deduction under section 80P(2)(d) of the Act. 12. Section 2(19) of the act defines cooperative society means a cooperative society registered under the Cooperative societies act, 1912 or under any other law for the time being in force in any State for the registration of cooperative societies. Thus if the cooperative banks are falling into the definition of cooperative societies', naturally the deduction would be eligible to the assessee under section 80P(2)(d) of the act. Therefore it needs to be examined that whether the cooperative banks are operative societies under section 2 subsection (19) of the act are not. 13. Section 2(10) of the Maharashtra cooperative....