TaxTMI 
TaxTMI 
2026 (6) TMI 268
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.... 1961 (in short 'the Act') for the A.Y. 2021-22. 2. In the instant case, the only controversy involved relates to disallowance of Rs. 1,76,987/- on account of not allowing the deduction claimed under Section 80P(2)(d) of the Act for the interest income earned by the Assessee from deposits maintained with Co-operative Banks namely Maharashtra State Co-operative Bank Limited and Saraswat Bank by way of rectification order dated 24.02.2023 under Section 154 of the Act, which subsequently got affirmed through impugned order herein. We observe that the issue related to not allowing the deduction claimed under Section 80P(2)(d) of the Act has been decided by various courts across the nation including by the Hon'ble Co-ordinate Bench of the Tri....
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....ole of such income;" 10. Thus, for the purpose of provisions of section 80P(2)(d) of the Act, two conditions are required to be cumulatively satisfied- (i) income by way of interest or dividend is earned by the Co-operative Society from the investments, and (ii) such investments should be with any other Co-operative Society. Further, the term "co-operative society" is defined under section 2(19) of the Act as under: "(19) "co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies; 11. In the present case, there is no dispute that the Assessee is ....
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....clude Co-operative Banks that function at par with other commercial banks i.e. which lend money to members of the public. Thus, we are of the considered view that section 80P(4) of the Act is of relevance only in a case where the Assessee, who is a Co-operative Bank, claims a deduction under section 80P of the Act which is not the facts of the present case. Therefore, we find no merits in the aforesaid reasoning adopted by the AO and upheld by the learned CIT(A) in denying deduction under section 80P(2)(d) of the Act to the Assessee. 12. As regards the claim of deduction under section 80P(2)(d) of the Act, it is also pertinent to note that all Co-operative Banks are Co-operative Societies but vice versa is not true. We find that th....
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.... however, are unable to subscribe to their view that the same shall also jeopardize the claim of deduction of a cooperative society under Sec. 80P(2)(d) in respect of the interest income on their investments parked with a co-operative bank. We have given a thoughtful consideration to the issue before us and are of the considered view that as long as it is proved that the interest income is being derived by a cooperative society from its investments made with any other cooperative society, the claim of deduction under the aforesaid statutory provision, viz. Sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society' had been defined under Sec. 2(19) of the Act, as under: '(19) "Co-o....