TaxTMI 
TaxTMI 
2026 (5) TMI 1007
X X X X Extracts X X X X
X X X X Extracts X X X X
....1.2023 & 05.12.2023, for the Assessment Years 2018-19 and 2020-21. 2. Since the issues involved in both the appeals are common and identical, we extract the grounds of appeal raised in ITA No.99/Ahd/2024 for Assessment Year 2018-19 for the purpose of adjudication. The decision rendered in the said appeal shall apply mutatis mutandis to the other appeal bearing ITA No. 100/Ahd/2024 for Assessment Year 2020-21. 3. The Assessee has taken the following ground of appeal:- 1 The Ld. CIT(A) has erred in law and on facts in wrongly exercising the power of enhancement of income u/s. 251(1) of the Act. In view of the facts and legal position of the case, the Ld. CIT(A) has no power of enhancement u/s. 251(1) of the Act, on the issues w....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... The Ld. CIT(A) has erred in law and on facts while confirming the disallowance made by the AO in respect of the dividend income of Rs. 84,000/- claimed u/s. 80P of the Act. Under the facts and circumstances of the case and in law, the deduction u/s. 80P of the Act is required to be allowed in respect of the dividend income of Rs. 84,000/- 5. The Ld. CIT(A) has erred in law and on facts while allowing the deduction u/s. 80P of the Act only to the tune of Rs. 50,000/- while treating the assessee society as "Other society within the meaning of Sec. 80P(2)(c)(ii) of the Act. Under the facts and circumstance of the case, the assessee society is required to be allowed the deduction u/s. 80P of the Act for an amount of Rs. 2,91,93,822/-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....P in respect of certain income components. 6. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the Ld. CIT(A), who partly confirmed the additions and also restricted the deduction under section 80P of the Act. 7. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. 8 Heard the arguments of both the parties and perused the material available on record. Issue : Deduction u/s 80P in respect of Interest Income 6. The principal issue before us relates to the eligibility of deduction under section 80P(2)(d) of the Act in respect of interest income earned from deposits with co-operative banks. The Ld. AR submitted before us that this issue stands settled....
X X X X Extracts X X X X
X X X X Extracts X X X X
....able to instant case and Principal Commissioner was not justified in invoking revisional powers under section 263 which was rightly reversed by Tribunal - Held, yes [In favour of assessee) *** * The controversy sought to be canvassed with regard to deduction under section 80P(2)(d) is no more res integra in view of the decision of this Court in case of Katlary Kariyana Merchant Sahkari Sarafi Mandali Ltd. v Asstt. Commissioner of Income Tax [2022] 140 taxmann.com 602 (Guj.) as well as in case of State Bank of India v Commissioner of Income Tax (2018) 389 ITR 578 (Guj.) wherein it was held that the deduction under section 80P(2)(d) is available to the cooperative societies on the income earned as interest on the investment made w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he cooperative bank is liable to pay tax under the provisions of the Act and in such eventuality, the provision of section 80P would not be applicable as per the amendment of sub-section (4) of section 80P. Therefore, the exclusion of applicability of section 80P to cooperative banks by section 80P (4) would not disentitle the respondent-assessee from claiming deduction under section 80P(2)(d) in absence of any amendment in the said section and that would not be sufficient to deny the claim of the respondent assessee for deduction of interest earned from investment made in a cooperative bank which is also a cooperative society from the total income. [Para 30] * The Apex Court in case of Kerala State Co-operative Agricultural & Rura....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nk, being a co-operative society, qualifies for the purposes of section 80P(2)(d), and therefore, interest income earned from such investments is eligible for deduction. 6.2 Since there is no change in the legal proposition and the factual matrix of the case, respectfully following the decision of the Hon'ble Jurisdictional High Court (supra), we hold that the assessee is entitled to deduction under section 80P(2)(d) in respect of interest income earned from co-operative banks and the ground raised by the assessee in this regard is hereby allowed. Issue : Dividend Income 7. The assessee has also claimed deduction under section 80P of the Act in respect of dividend income received from co-operative institutions. Since such income is....