2026 (8) TMI 1431

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....of interest income earned from cooperative banks. 2. Learned Counsel for the assessee, at the outset, submitted that the issue in appeal is squarely covered by the decision of the coordinate bench in assessee's own case for the assessment years 2014-15, 2015-16, 2017-18, and 2021-22. A copy of the order of the Tribunal for the assessment years 2017-18 and 2021-22 in ITAs No. 3852/Mum/2024 and 1362/Mum/2024, dated 30.09.2024 and 25.07.2024 respectively, was placed on record. 3. On the other hand, the learned DR placed reliance on the orders of the authorities below. 4. Heard rival contentions and perused the orders of the authorities below. We find that the issue in appeal is squarely covered in assessee's own case for the a....

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....he Co-operative Banks on the basis that there is a basic difference between interest on investments and interest on saving banks, and section 802(d) of the Act only covers the former. From a careful perusal of the provisions of section 80P(2)(d) of the Act, we find that the term "investment" has not been qualified to be only the investment in the fixed deposits. Thus, from the provisions of section 80P(2)(d) of the Act, it is evident that the same includes interest derived from all investments with any other Co-operative Society, including Co-operative Banks. We find that while dealing with a similar issue, the Co-ordinate Bench of the Tribunal in Punjab State Federation of Co- operative House Building Societies Ltd Vs. ITO, [1982] 2 ITD 61....

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....e 6 of the Savings Bank Rule regarding deposits, stipulates that a depositor may withdraw money from his account not more than 12 times a month. The very name of the account is savings account and, therefore, by implication it is for the purpose of earning interest on savings. In our opinion. the narrow interpretation given by the authorities below to deny the assessee deduction under section 80P(2)(d) is not justified. We, therefore, reverse their orders and direct that the said amount of interest be treated as exempt under section 80P(2)(d) for the year under appeal. 11. We find that the learned JCIT(A), though referred to the aforesaid decision, however, disregarded the same on the basis that the same is very old, without distin....