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| The Tax Publishers2019 TaxPub(DT) 0656 (Coch-Trib) INCOME TAX ACT, 1961
Section 80P(2)(d)
Where appellate authority had elaborately considered the distinction between the co-operative society and a cooperative bank and the interest income was received from a cooperative bank, therefore, assessee-society was not entitled to claim deduction under section 80P(2)(d).
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Deduction under section 80P(2)(d) - Interest received on investment made with co-operative bank - Allowability -
Assessee, a co-operative society, was engaged in the business of manufacturing and sale of homeopathic medicines and claimed deduction under section 80P(2)d. AO denied the deduction claimed by assessee alleging that payer of the amount was not a cooperative society and interest/dividend paid by cooperative society alone was entitled to exemption under section 80P(2)(d). Held: The benefit of section 80P is available only for interest/dividend that are received by a co-operative society for investments made with another co-operative society. CIT(A) had categorically concluded that payer of the amount was co-operative Bank and not a co-operative society. When the interest income was received from a cooperative bank, recipient co-operative society would not be entitled to deduction under section 80P(2)(d).
Relied:Pr. CIT v. The Totagars Co-Operative Sale Society (2017) 395 ITR 611 (Karn.) : 2017 TaxPub(DT) 1748 (Karn-HC) Pr. CIT v. The Totagars Co-operative Sale Society (2017) 392 ITR 74 (Karn.) : 2017 TaxPub(DT) 0677 (Karn-HC)
REFERRED :
FAVOUR : Against the assessee
A.Y. :
IN THE ITAT, COCHIN BENCH
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