TaxTMI 
TaxTMI 
2026 (5) TMI 838
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.... the NFAC/CIT(A) sustaining the denial of claim of deduction u/sec 80P(2)(a)(i) of the Act and without prejudice to alternate/obtaining relief on interest income earned on deposits with the co-operative Banks. 2. The brief facts of the case are that, the assessee is a cooperative society registered under Maharashtra Societies Act 1960 and is engaged in providing credit facilities to its members. The assessee has filed the return of income for the A.Y 2017-18 on 7.11.2017 disclosing a total income of Rs. Nil after claiming deduction u/sec 80P of the Act and the case was selected for scrutiny. Subsequently notice u/sec142 & 142(1) of the Act are issued calling for the details in respect of claims and the information supporting the return o....
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....te disallowance of interest income on deposits with co-operative banks and dealt with judicial decisions and denied the claim of deduction u/s. u/s. 80(P)(2)(a)(i)/80(P)(2)(d) of the Act and assessed the total income of Rs. 75,91,031/- and passed the order u/sec 143(3) r.w.s.263 r.w.s 144B of the Act dt.23.03.2023. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas theCIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and the assessee has filed detailed submissions on the allowability of claim but the CIT(A) has confirmed the action of Assessing Officer that interest income earned by the assessing society with co-operative banks is n....
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....llowability of deduction u/s 80P(2)(d) of the IT Act to primary credit cooperative society. In this regard, we find that in number of decisions passed by coordinate benches of this Tribunal it has been held that a primary credit cooperative society is eligible to claim deduction u/s 80P(2) of the IT Act on interest and dividend income earned from its investment with other cooperative banks which are also cooperative societies duly registered under Maharashtra State Cooperative Societies Act. In this regard, following decisions are relevant :- (i) Gurudatta Gramin Bigersheti, ITA No.502/PUN/2025 order dated 28-07-2025. (ii) Pune Jila Madhyawarti Sahkari Bank Sevakanchi Sahkari Patsans tha Maryadit, ITA No.1086/PUN/2025 orde....
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....fact that against the relied upon decision in the case of M/s. Quepem Urban Co-operative Credit Society Ltd. (supra),the Special Leave Petition has been dismissed, having heard learned counsel appearing on behalf of the respective parties, the issue involved in the present appeal is squarely covered against the Revenue in view of the decision of this Court in Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 123 taxmann.com 161/279 Taxman 75/431 ITR 1/[2021] 7 SCC 90. This Court, in the aforesaid decision has specifically observed and held that primary Agricultural Credit Societies cannot be termed as Cooperative Banks under the Banking Regulation Act and, therefore, such credit societies shall be entitled to exemption under section 80(....
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....ome-tax Act. 6. In view of the above and for the reasons stated hereinabove, the present appeal deserves to be dismissed and is accordingly dismissed, answering the question against the Revenue and in favour of the Assessee." 17. Respectfully following the above latest decision passed by Hon'ble Supreme Court cited supra, we are of the considered opinion that the issue of allowance of deduction u/s 80P(2) of the IT Act in favour of primary credit cooperative society has attained finality & therefore we do not find any error in the order passed by Ld. CIT(A)/NFAC with regard to allowance of deduction u/s 80P(2)(d) of the IT Act to the assessee on interest income earned from its investment from cooperative banks which are al....