TaxTMI 
TaxTMI 
2024 (7) TMI 1810
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....r the assessment year 2021 22. 2. In its appeal, the assessee has raised the following grounds:- "1 On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in upholding the additions made to the total income of the Appellant by the learned Assessing Officer by denying the deduction under section 80P(2)(d) to the extent of Rs. 4,84,525/- claimed by the appellant. The learned Assessing Officer and the learned CIT(Appeals) failed to appreciate that the Appellant is a Registered Premises Co-operative Society and is therefore eligible to deduction under section 80P(2)(d) of the Act. In respect of interest from the Co-operative Banks. The learned Assessing Officer and the learned CIT(Appeals) failed to a....
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....ive Bank is also the Co-operative Society registered under the Co-operative Societies Act, 1972 or under any other law in force in the State Government/Central Government. Accordingly, the learned JCIT(A), held that every Co-operative Bank is a Co-operative Society for the purpose of section 80P(2)(d) of the Act and the Co-operative Banks from which the assessee has received interest are also Co-operative Societies for the purpose of section 80P(2)(d) of the Act. However, the learned JCIT(A), only granted relief to the assessee under section 80P(2)(d) of the Act in respect of interest income of Rs. 12,34,905/- received from fixed deposits in the Co-operative Banks, and disallowed the interest income of Rs. 4,84,525/- received on saving acco....
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....interest income from saving accounts is not an investment for the purpose of section 80P(2)(d) of the Act. 7. Before proceeding further, it is relevant to note the provisions of section 80P of the Act under which the assessee has claimed the deduction in the present case. As per the provisions of section 80P(1) of the Act, the income referred to in sub-section (2) to section 80P shall be allowed as a deduction to an assessee being a Co-operative Society. Further, section 80P(2)(d) of the Act, reads as under: "80P. Deduction in respect of income of co-operative societies. (1) ...... (2) The sums referred to in sub-section (1) shall be the following, namely:- (a) ..... (b) ..... (c) .......
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....ction 80P(2)(d) of the Act, and has also allowed the deduction in respect of interest income received from fixed deposits in the Co-operative Banks under section 80P(2)(d) of the Act. However, the learned JCIT(A) did not extent the same benefit in respect of interest income received on saving accounts maintained with the Co-operative Banks on the basis that there is a basic difference between interest on investments and interest on saving banks, and section 80P(2)(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 ....
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....l yield : Stroud's Dictionary, 4th edition, p. 1419. 6. The savings bank account which the assessee had opened has to be understood in contrast to what the assessee could have done by placing the money in the current account. In the savings bank account, there are restrictions on withdrawals. For example, rule 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,....