2023 (9) TMI 1775

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....essee reads as under : "1. The order of the Ld. First Appellate Authority confirming the order U/s 143(3) of the I. T. Act is arbitrary and contrary to the provisions of law and facts of the case. 2. The Ld First Appellate Authority is not justified in confirming the order disallowing the deduction claimed. u/s. 80P(2)(a) in respect of Rs. 29,97,587/- being the interest received from M/s. Andhra Pragati Grameen Bank. 3. The Ld. First Appellate Authority is not justified in treating the sum of Rs. 29,97,587/- as income from other sources and there by denying the deduction claimed u/s 80P(2)(a) of the I.T. Act." 3. Facts of the case, in brief, are that assessee is a Co-operative Society, who filed its return of i....

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....ue on the ground that the Assessing Officer (s) had accepted these taxpayer identical section 80P(aa) deduction claims pertaining to the interest income derived from nationalized banks. Learned Pr. CIT holds that the hon'ble apex court's decision in Totgars Co operative Society Ltd vs, Income Tax Officer (322 ITR 283) (S.C) as well as CIT vs. Nawanshahar Central Co-op Bank Ltd (289 ITR 6) (S.C) have already held that such deduction isn't available to a society like the assessee but banks only. He has also referred to the CBDT Circular No.18/2015 to the very fact. 4. Both the parties reiterated their respective stands against and in support of Pr. CIT's foregoing revision directions. We notice in this factual backdrop that the i....

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....pleadings qua correctness of the learned PCITs foregoing revision direction and find no reason to uphold the same. This is primarily for the reason that hon'ble jurisdictional high court decision in Vavveru Co-operative Rural Bank Ltd. Vs. CCIT 396 ITR 371 (A.P) holds that a co-operative society's income derived from deposits in nationalized banks/SBI is also eligible for 80P deduction. Their lordships have duly taken into consideration the hon'ble apex court's foregoing decision (supra). We therefore hold that both the Assessing Officers therein had not committed any error in not disallowing the assessees' section 80P(2)(d) deduction claims in issue qua the respective interest income derived form fixed deposit in nationaliz....