TaxTMI 
TaxTMI 
2024 (12) TMI 1790
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....re as tabulated below AY Date of filing of return Income returned - Rs. Deduction claimed u/s.80P(2)(d) - Rs. 2017-18 27.10.2017 Nil 3,78,55,905 2018-19 11.10.2018 Nil 3,99,50,656 (after setting off loss actual claim is Rs. 3,21,87,161) 2020-21 14.02.2021 Nil 2,66,58,597 3. The Assessing Officer (AO) while denying the deduction claimed by the assessee, held that the interest and dividend income earned from investments held in Cooperative Banks is not eligible for deduction under section 80P(2)(d). The AO in this regard placed reliance on the decision of the Hon'ble Supreme Court in the case of Totgar's Co-operative Society Ltd. Vs. ITO, 322 ITR 283. On further appeal, the CIT(A) held that the assessee is entitled for deduction under section 80P(2)(d) by placing reliance on the decision of the coordinate bench in assessee's own case for AY 2013-14 (ITA No.7352/Mum/2016 dated 17.04.2018) and AY 2014-15 (ITA No.3733/Mum/2019 dated 27.01.2021). The findings of the AO and the CIT(A) are identical for all the years under consideration. The revenue is in appeal against the orders of the CIT(A). 4. We heard the parties and perused t....
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.... co-operative society registered under the Co-operative societies Act. 1912 or under any other law for the time being in force in any state for registration of Co-operative Societies . Further, as per section 2(10) of Maharashtra Co-operative Society Act, 1960, Co-operative Bank means a society which is doing the business of banking as defined in section 5(l)(b) of the Banking Companies Act, 1949. Hence, it is apparent from the above that the appellant being a Co-operative society could not be said to be a cooperative bank so as to deny it the benefit of provision of sections 80P as provided in sections 80P(4), where as a cooperative Bank is to be treated as a co-operative Society for the purpose of allowing deduction as per section 80P(2)(d). 5.8 The Hon'ble Bombay High court as Goa, in the case of M/s. The Quepem Urban Co-operative Credit Society ltd., Vs ACIT Circle-1, Margoa in Tax Appeals No. 22, 23, & 24 of 2015 has examined the issue in detail and after considering al the relevant provisions and facts of the case has come to a conclusion and held that the assesses could not be considered to be a Cooperative Bank for the purpose of sections 80P(4) of the Act. Fur....
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.... provides for deduction in respect of income of a co-op society by way of interest or dividend from its investments [Q\ "with other co-op society if such income is included in the gross total income of the such Co-op society. In view these facts and circumstances we are of the considered view that the assessee is entitled to the deduction of Rs. 14,88,107/- in respect of interest received/derived by it on deposits with co-op, banks and therefore the appeal of the assessee is allowed by reversing the order of the CIT (A). The AO is directed accordingly," 5.11 Further Hon'ble ITAT Mumbai has decided the issue in the case of Lands' End Co-operative Housing Society Ltd vs. I.T.O. I.T.A. No. 3566/Mum/2014 (ITAT) dated 15-01-2016.The operative part of the above decision reads as under:- " the provisions of section 80(P)(2)(d) of the Act provides for deduction in respect of income of a coop society by way of interest or dividend from its investments with other coop society if such income is included in the gross total income of the such coop society. In view these facts and circumstances we are of the considered view that the assessee is entitled to the deduction....
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.... disallowed claim of deduction of interest income of Rs.42,57,3487- from Co-operative Bank u/s 80P(2)(d) of the Act as Co-operative bank is not a Co-operative Society. I find force in the arguments of the appellant and draw strength from various judicial pronouncements of the jurisdiction at ITAT like The Nutan Laxmi Chs Ltd, Mumbai vs Assessee decided on 24 August, 2016, Lands End Cooperative Housing Society Ltd vs. I.T.O. I.T.A. No. 3566/Mum/2014 (ITAT) dated 15- 01-2016 and ACIT vs. M/s. Jawala Cooperative Urban Thrift & Credit Society Ltd. A Cooperative Bank is always registered under the relevant Cooperative Societies Act of the relevant State. However, during the appellate proceedings, appellant has submitted that the claim of deduction u/s.80P has been accepted in the subsequent year and no addition on the above ground has been made in the AY 2013-14 and AY 2014-15 In view of above, the appellant is entitled to claim of deduction u/s 80P of the Act, therefore, AO is directed to allow Rs.42,57,348/- as deduction u/s.80P of the Act. This ground of appeal is allowed. 6. I have gone through the orders of the authorities below. It is clear from the order of CIT(A) that a....