INCOME TAX ACT, 1961

Section 80P(2)(d)

Deduction under section 80P(2)(d) - Co-operative society - Allowability as regards interest earned from co-operative bank -

Assessee-co-operative society claimed deduction under section 80P(2)(d) as regards interest income earned from co-operative bank. AO disallowed assessee's claim. Held: Though co-operative bank pursuant to insertion of sub-section (4) of section 80P would no more be entitled for claim of deduction under section 80P, however, as a co-operative bank continues to be a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State for the registration of co-operative societies, therefore, interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for deduction under section 80P(2)(d).

Relied:ITO v. Oberoi Spring Co-operating Housing Society Ltd. (ITA No. 786/M/2019 dated 28-8-2020) : 2020 TaxPub(DT) 3460 (Mum-Trib), Solitaire CHS Ltd. v. Pr. CIT (ITA No.3155/Mum/2019 dated 29-11-2019), Jiwan Satya Co-op Housing Society Ltd. v. ITO (ITA Nos. 4248 & 4249/MUM/2018 dated 26-7-2019), Ekta Milan Co-op. Housing Society Limited v. CIT (ITA No.3867/Mum/2018 dated 30-4-2019),Kaliandas Udyog Bhavan Premises Co-op Society Ltd. v. ITO (ITA No. 547/Mum/2017 dated 25-4-2018) : 2018 TaxPub(DT) 3128 (Mum-Trib), ITO v. Shree Keshorai Patan Sahakari Sugar Mill [ITA Nos. 418&419/JP/2017 dated 31-1-2018] : 2018 TaxPub(DT) 1317 (JP-Trib), Pr. CIT v. Totagars C-operative Sale Society (2017) 392 ITR 74 (Karn-HC) : 2017 TaxPub(DT) 677 (Karn-HC) dated 5-1-2017)(Karn) and ITO v. Eternity Co-op. Housing Society Ltd.[ITA No. 6159/M/2017 dated 15-5-2018].