TaxTMI 
TaxTMI 
2025 (11) TMI 2031
X X X X Extracts X X X X
X X X X Extracts X X X X
....ns prescribed under the said section. 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in allowing deduction u/s 80P(2)(d) on income amounting to Rs. 2,33,90,432/- earned from investment in co-operative Banks without considering the decision of the Hon'ble Supreme Court in Totgar's Co-operative Sale Society Limited vs. ITO (2010) 322 ITR 283 (SC) and Hon'ble Karnataka High Court in PCIT Vs. Totgar's Co-op Sale Society (2017) 395 ITR 611 which held that such interest income is taxable under Income from Other sources. 3. The appellant craves leave to add, amend, modify, or withdraw any of the above grounds of appeal before or at the time of the hearing." 4. Facts of the case, in brief, are that the assessee is a primary credit cooperative society duly registered under Maharashtra Cooperative Society Act, 1960 and engaged in the activity of providing credit facility to its members and also accepting deposits from them as per the bye-laws of the society. The assessee furnished its return of income declaring NIL income after claiming deduction u/s 80P(2) of the IT Act. The return of income was accepted and processed by CPC u/s 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....operative society preferred an appeal before the Ld. CIT(A)/NFAC. After considering the reply and various decisions passed by coordinate bench of this Tribunal, Ld. CIT(A)/NFAC deleted the addition of Rs. 2,33,90,227/- and allowed the appeal filed by the assessee by observing as under :- "6.2 I have gone through the facts of the case, the submissions made by the appellant and various judgements of the courts on the issue. It is admitted fact that appellant received interest income and dividend from investment with the cooperative bank amounting to Rs. 2,33,90,227/-. 6.3 On a similar issue the decision of INCOME TAX APPELLATE TRIBUNAL, MUMBAI in the case of Mittal Court Premises Co-op Society in I.T.A. Nos.1535 to 1537/Mum/2022 " 4. Brief facts the AO noted was that the assessee is Co-operative Society constituted by members (office tenement owners) for maintaining the Mittal Court Building. The assessee society returned income declaring in its return of income taxable income of Rs. 3,34,640/-. The AO noted that the assessee had invested funds as FDR with the Saraswat Co-op. Bank Ltd, Abhudaya Co-op Bank Ltd. National Co-op Bank Ltd. and the Shamrao Vithal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rest income earned by the Cooperative Society from the investments made with the Cooperative Banks is eligible for claim of deduction u/s 80P(2)(d) of the Act:- 1. Pr. CIT VS. Totagars Co-operative Sale Society (2017) 392ITR 74 (Karn) 2. State Bank of India vs. CIT (2016) 389 ITR 578 (Guj) 3. Lady Ratan Tower Cooperative Housing Society Ltd. vs. ITO in ITA No. 1152/Mum/2018 in decision dated 09.08.2018. 4. Shree Mahadeshwar Sahakari Patpedhi Maryadit vs. ITO in ITA No. 374/Mum/2018 dated 06.03.2019. 5. Kaliandas Udyog Bhavan Premises Co-operative Society vs. ITO in ITA No. 6547/Mum/2017 dated 25.04.2018. 6. ITO vs. M/s Oberoi Spring Co-operative Housing Society in ITA no. 786/Mum/2019. 6.5 Further in the case of Kaliandas Udyog Bhavan Premises Co-operative Page 8 of 9 AAAJT0095N- THE AMMUNITION FACTORY CO OP CREDIT SOCIETY LIMITED A.Y. 2020-21 ITBA/NFAC/S/250/2024-25/1073832767(1) Society vs. ITO [2018] 94 taxmann.com 15 (Mumbai) [25-04-2018], the Jurisdictional Mumbai Bench of the ITAT held that a co-operative bank continues to be a co-operative society registered under Co-operative Societies Act, 1912 or under any oth....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Sahkari Bank Sevakanchi Sahkari Patsanstha Maryadit, ITA No.1086/PUN/2025 order dated 23-06-2025. (iii) Sharadchandra Nagari Sahakari Patsanstha Maryadit, ITA No.1041/PUN/2025 order dated 04-06-2025. 9. Respectfully following the above decisions passed by coordinate benches of this Tribunal, we are of the considered opinion that the interest and dividend income earned by the assessee cooperative society on its investments with other cooperative bank is entitled for deduction u/s 80P(2)(d) of the Act. We further find that the facts of the case of Totagars Cooperative Sale Society Ltd. are not applicable to the facts of the instant case since the assessee cooperative society is not engaged in the business of sale of agricultural & other products, instead it is engaged in the activity of providing credit facilities to its members and also accepting deposits from them and during the course of above activities certain funds were mandatorily required to be deposited with other cooperative banks as per the Maharashtra State Cooperative Societies Act. In this regard, we also find support from judgement passed by Hon'ble High Court of Bombay in the case of Annasaheb Patil Matha....