2026 (4) TMI 894

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....al is opposed to law and facts of the case for the contentions raised hereunder. 2. The Hon'ble CIT has erred in law by confirming the disallowances made by the Assessing Officer under section 80P(2)(a)(i) & 80P(2)(d) of the Income Tax Act, 1961. 3. The Hon'ble CIT has erred in law by levying Interest under section 234A & 234B of the Income Tax Act, 1961. 4. The appellant craves leave to add, to amend and/or alter any of the foregoing grounds and such other grounds as may be urged at the time of hearing. PRAYER For the grounds set forth herein above and such other grounds and arguments that may be submitted during the course of appeal proceedings, this Hon'ble court may be pleased to set as....

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....e u/s. 80P(2)(a)(i) as well as u/s. 80P(2)(d) of the Act. As against the said order, the assessee filed an appeal before the Ld.CIT(A). The Ld.CIT(A) had decided the appeal on merits since the assessee had not responded to the notices issued by him. The Ld.CIT(A) had relied on the order of the Coordinate Bench of this Tribunal and held that the assessee was not eligible for deduction u/s. 80P(2)(a)(i) or 80P(2)(d) of the Act on the interest income received from the co-operative banks. 3. As against the said order, the assessee is in appeal before this Tribunal. 4. At the time of hearing, the Ld.AR submitted that the assessee is entitled for claiming deduction on the interest income earned from the cooperative banks even though the ass....

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....e Hon'ble Supreme Court reported in 431 ITR 1 in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT wherein the Hon'ble Supreme Court had held that the presence of the nominal members would not disentitle the assessee's societies from claiming the benefit of deduction u/s. 80P(2)(a)(i) of the Act. Respectfully following the above said judgment, we are allowing the claim of Rs. 5,85,755/- which was disallowed based on the finding that the assessee is having the nominal members also as members. 8. Insofar as the disallowance made u/s. 80P(2)(d) of the Act on the interest income earned out of the deposits made with the co-operative banks, we are of the view that the co-operative banks are nothing but the species of the co-operative ....

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....of the Act on the interest amount earned from the co-operative societies / bank. In the said judgment, the Hon'ble High Court also distinguished the judgment of the Hon'ble Supreme Court reported in 322 ITR 283 in the case of Totgars Co-operative Sale Society Ltd. Vs. ITO since the Hon'ble Supreme Court had considered the deduction claimed u/s. 80P(2)(a)(i) of the Act and not 80P(2)(d) of the Act. 10. We have also considered the another order of this Tribunal in ITA Nos. 827 to 829/Bang/2023 dated 28/02/2024 in the case of NTI Housing Cooperative Society vs. ACIT wherein this Tribunal had followed the earlier judgment reported in 392 ITR 74 and held that the interest income received on the investments held with a co-operative bank would ....