The Tax Publishers2020 TaxPub(DT) 5596 (Mum-Trib)

INCOME TAX ACT, 1961

Section 80P(2)

As decided in case of Pr. CIT v. Totagars Co-operative Sale Society [(2017) 392 ITR 74 (Karn-HC) : 2017 TaxPub(DT) 677 (Karn-HC)] High Court had taken a contrary view holding that interest income earned from deposit with the Co-operative Bank does not qualify for deduction under section 80P(2)(d) and no judgment from High Court on the issue of eligibility of deduction under section 80P(2)(d) on interest income derived by a Co-operative Society from a Cooperative Bank was brought to notice, therefore, deduction claimed by the assessee was allowed.

Deduction under section 80P(2) - Interest derived from investments with cooperative banks - Allowability -

Assessee-society derived interest income from saving bank account and fixed deposits with Co-operative Banks. He claimed deduction of the aforesaid amount under section 80P(2)(d). AO in scrutiny assessment proceedings disallowed assessee's claim of deduction under section 80P(2)(d) on the ground that after insertion of sub-section (4) to section 80P, Co-operative Banks have been taken outside the purview of section 80P. Held: In the case of Pr.CIT v. Totagars Co-operative Sale Society [(2017) 392 ITR 74 (Karn-HC) : 2017 TaxPub(DT) 677 (Karn-HC)] High Court had taken a contrary view holding that interest income earned from deposit with the cooperative bank does not qualify for deduction under section 80P(2)(d). No judgment from High Court on the issue of eligibility of deduction under section 80P(2)(d) on interest income derived by a Co-operative Society from a Co-operative Bank was brought to notice. Therefore, deduction claimed by the assessee under section 80P(2)(d) in respect of interest derived from investments with the cooperative banks was allowed.

Followed:Pr. CIT v. Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn-HC) : 2017 TaxPub(DT) 1748 (Karn-HC), Pr. CIT v. Totagars Co-operative Sale Society (2017) 392 ITR 74 (Karn-HC) : 2017 TaxPub(DT) 677 (Karn-HC), Surat Vankar Sahakari Sangh Ltd. v. Asstt. CIT (2016) 421 ITR 134 (Guj) : 2016 TaxPub(DT) 3733 (Guj-HC), State Bank of India (SBI) v. CIT 2016 TaxPub(DT) 3564 (Guj-HC), K. Subramanian v. Siemens India Limited & Anr. (1983) 15 Taxman 594 (Bom) : (1985) 156 ITR 11 (Bom) : 1985 TaxPub(DT) 158 (Bom-HC), ITO v. State Bank of India Staff Vaibhav Co-op Hsg. Ltd. & Vice-Versa 2019 TaxPub(DT) 5016 (Mum-Trib) and Kaliandas Udyog Bhavan Premises Co-op Society Ltd. v. ITO (2018) 94 Taxmann.com 15 (Mum-Trib) : 2018 TaxPub(DT) 3128 (Mum-Trib).

REFERRED :

FAVOUR : In assessee's favor.

A.Y. : 2015-16



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