TaxTMI 
TaxTMI 
2026 (7) TMI 1708
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....by way of this common order for the sake of convenience. We will take up the appeal in ITA No. 524/Bang/2026 for A.Y. 2016-17 as the lead case and the result arrived in the said appeal will apply mutatis mutandis to the appeals in ITA Nos. 525 to 529/Bang/2026 for A.Ys. 2018-19 to 2022-23. 3. The brief facts of the case are that the assessee is co-operative organization registered under the provisions of the Karnataka Co-operative Societies Act. The assessee filed their return of income and claimed the interest income earned from the Apex Bank as eligible for deduction u/s. 80P of the Act. Subsequently, the assessing officer had noticed that the assessee had received the interest income from the banks and therefore they are not entitled ....
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....ther judgments and confirmed the disallowance made by the AO. 5. As against the said order, the assessee is in appeals before this Tribunal. 6. At the time of hearing, the Ld.AR submitted that the judgment of the Hon'ble Supreme Court reported in 322 ITR 283 in the case of Totagars Co-operative Sales Society Ltd. vs. ITO could not be cited as a precedent to the facts of the present case since in the above judgment, the Hon'ble Supreme Court had given a finding that the assessee society had deposited the member's money got from the sale of agricultural produce and therefore the Hon'ble Supreme Court had denied the deduction claimed by the assessee as not in the course of its business and classified the same as income from other sources....
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....the said provision in which the societies may deposit its funds with any Co-operative Bank or any Scheduled Bank. The Ld.AR therefore submitted that the deposits are compulsory in nature and therefore the assessee is entitled for the deduction on the interest income earned from the said investments. The Ld.AR also relied on the judgment of the Hon'ble Jurisdictional High Court reported in 251 ITR 736 in the assessee's own case wherein the Hon'ble High Court had granted the deduction u/s. 80P(2)(d) of the Act on the interest income earned from the deposits made with the co-operative banks and submitted that the facts are similar and therefore prayed to take a consistent view for the current year also. The Ld.AR also relied on the judgment of....
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....We have also considered the another judgment of the Hon'ble Jurisdictional High Court reported in (2015) 55 taxmann.com 447 (Karnataka) in the case of Tumkur Merchants Souharda Credit Co-operative Ltd. vs. ITO wherein the Hon'ble High Court had held that the interest income is eligible for deduction u/s. 80P(2)(a)(i) of the Act. 10. We have also considered the judgment of the Hon'ble Jurisdictional High Court reported in 251 ITR 736 in the assessee's own case wherein the Hon'ble Jurisdictional High Court had accepted the claim made u/s. 80P(2)(d) of the Act. The Hon'ble High Court had observed that the income earned from the interest from co-operative banks are an allowable deduction u/s. 80P(2)(d) of the Act. 11. The Ld.CIT(A) had re....