2025 (3) TMI 2041

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....25 for the asst. year 2016-17 2. The only interconnected issue raised by the assessee is that the learned CIT(A) erred in denying the benefit of deduction under section 80P of the Act of Rs. 30,74,655/- only. 3. During the assessment proceedings, the AO found that the assessee has shown certain interest income which is not eligible for deduction under section 80P(2)(a)/80P(2)(d) of the Act. Therefore, the AO disallowed the same and added it to the total income of the assessee. On appeal, the learned CIT(A) confirmed the order of the AO. 4. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before us. 5. The learned AR before us filed a paper book containing pages 1 to 26 and contended that the amount o....

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....Hon'ble Karnataka High Court in case of Totgars' Co-operative Sales Society Ltd. (supra) and Hon'ble Apex Court (supra). We note from the submissions of the ld. AR that the assessee has invested in District central Co-operative Banks as noted above and earned interest thereon. Section 80P(2)(d) describes that if the assessee has received interest from the co-operative society, then the assessee is eligible for claim of deduction on such interest received. In the judgment of Hon'ble Apex Court in the case of Kerala State Cooperative Agricultural and Rural Development Bank Ltd. (KSCARDB) vs. The Assessing Officer, Trivandrum & Ors. (2023) 154 taxmann.com 305 (Supreme Court) it has been discussed in detail the definition of cooperative banks a....

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....e is also remitted back to the AO for verification of interest received from co-operative bank in above terms. If AO finds that the co-operative banks are carrying its banking business activities in the light of the above judgment, the deduction u/s. 80P(2)(d) on such interest income should not be granted. 10. We further note that the assessee has received interest from other co-operative banks on its investments. The revenue authorities have considered the entire interest as income from other sources u/s. 56 including the interest received from co-operative banks and no expenses u/s. 57(iii) has been allowed to the assessee for earning of such income. While calculating the income, the net income should be considered as taxable inc....