TaxTMI 
TaxTMI 
2026 (6) TMI 33
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....ted 18.11.2025 respectively. Since issues are involved in the appeals are identical, therefore, these have been heard together and are being disposed of by the common order. ITA No.5/Kol/2026 is taken as lead case and the decision of this order will mutatis mutandis apply to another appeal in ITA No.6/Kol/2026 also. 2. Shri Somnath Ghosh, Advocate represented on behalf of the assessee and Shri Kallol Mistry, Sr. DR, Sr. DR represented on behalf of the revenue. 3. It was submitted by the ld. AR that the assessee had made investment in nationalized banks. It was the submission that the assessee had received interest of Rs. 82,95,187/- for the impugned assessment year 2016-17. It was the submission that the Assessing Officer denied the b....
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.... find that the assessee is eligible for deduction u/s. 80P of the act and payment of gratuity, payment of leave encashment and provision for doubtful debts is also out of eligible income and that also gross total income of the Co-operative Society. As pointed out by CIT. Counsel for the assessee to the provisions of section 80P(1) of the Act that the gross total income includes any income referred to in sub-section (2) means the deduction will be allowed from gross total income. The relevant provision of section 80P(1) reads as under: "(1) Where in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject t....
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....es have not acted against it which would be contrary to the principle laid down in Bihari LaI Jaiswal & Ors 217 ITR 746 (SC). 3. On the facts and circumstances of the case Ld. CIT(A) has erred in not considering the prime issue that public policy laid down by the Parliament can not be overlooked and tax benefits be granted, despite objection of the Revenue, on the ground that regulatory body has not taken any action against the assessee for its violation. 4. On the facts and circumstances of the case Ld. CIT(A) has erred in not considering the fact that the legislature has not given deduction to all banks but only to RRB to promote target area and group for upliftment and in such a situation, all other banking activity of ....
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....etermined according to the funds deployed as per RRB Act. We have gone through the above case laws and find that whether income is attributable to SLR or non-SLR funds would not make any difference for the purpose of quantifying deduction on interest by Cooperative Bank u/s. 80P(2)(a)(i) of the Act as deposits of surplus idle money available from working capital i.e. reserves, excess collection of interest and other incomes all attributable to banking business. Therefore, the interest earned on non-SLR funds will also qualify for deduction u/s. 80P(2)(a)(i) of the Act. Hon'ble Allahabad High Court in the case of CIT Vs. Muzaffarnagar District Co-operative Bank Ltd. (2013) 214 Taxman 498 (All) relying on the decision of Hon'ble Supreme Court....