TaxTMI 
TaxTMI 
2024 (6) TMI 1593
X X X X Extracts X X X X
X X X X Extracts X X X X
....0-21. 2. Following same grounds of appeal have been raised in both the appeals: 1. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in allowing deduction u/s. 80P(2)(d) of the Income Tax Act in respect of interest earned from deposits from cooperative bank ignoring the amendment made by Finance Act, 2015 in section 194A(3)(v) of the Act which excludes the Cooperative Banks from the definition of "Cooperative Society" and requiring them to deduct income tax at source under Section 194A of the Act that also makes the legislative intent clear that the Co-operative Banks are not that specie of genus cooperative society, which are entitled to claim deduction under the special provisions of Ch....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al income from its activity as cooperative housing society, the same would continue to be fully taxable and will not be eligible for deduction under section 80P(2)(d) of the Act." 4. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in allowing deduction u/s. 80P(2)(d) of the Income Tax Act, 1961 in respect of interest earned from deposits, though Hon'ble Karnataka High Court in a detailed judgment discussing the law and various related issues in the case of PCIT vs. Totagar's Co-operative Sales Society ( 395 ITR 611) has specifically decided the Question of Law about the allowability of interest earned from deposits with co-operative bank u/s. 80P(2)(d) of the Income tax Act in favou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion shall not apply in relation to any co-operative bank. This being the intention, the deduction claimed by the other co-operative society cannot be denied which is not functioning on a commercial basis otherwise merely on the ground that it has earned some income from the co-operative banks which are functioning on a commercial basis. In support of the submission the appellant relied upon: i) State Bank of India Vs CIT [2016] 389 ITR 578 (Guj) ii) Kaliandas Udyog Bhavan Premises Co-operative Society Limited vs. ITO [2018] 94 taxmann.com 15 (Mumbai - Trib.) iii) Shree Mahadeshwar Sahakari Patpedhi Maryadit vs. ITO (ITA No. 374/Mum/2018 Order dated 13-3-2019) iv) ACIT vs. Metro city Crimincals Courts (20....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on'ble ITAT "D" Bench Mumbai in the case of Mittal Court Premises Co. Op. Society Ltd in ITA No. 1535 to 1537/Mum/2022 dt. 31.10.22 for A.Y. 14-15 to 16-17 noted that the issue is no longer res-integra; and dismissed the revenues appeal against CIT's order allowing the claim of deduction u/s. 80P(2)(d). Reliance was placed on the Tribunal decision in the case of Palm Court M. Premises Cooperative Society Itd. Vs PCIT for A.Y. 15 16 where in the order of the Ld. PCIT holding the Assessment Order passed by AO allowing the claim of deduction u/s. 80P(2)(d) was erroneous has been set aside. The Tribunal while arriving at the decision in favour of assessee in the case of Palm Court M. Premises Cooperative Society Ltd. placed reliance on ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ive banks pursuant to the insertion of subsection (4) to Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but as a co-operative bank continues to be 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, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for claim of deduction under Sec. 80P(2)(d) of the Act." 5.3 In the aforementioned decisions it has been held that the disallowance of deduction u/s. 80P (2)(d) does not fall within the scope of adjustment u/s. 143(1) an....