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| The Tax Publishers2021 TaxPub(DT) 2787 (Mum-Trib) INCOME TAX ACT, 1961
Section 80P(2)(d)
Interest income derived by a co-operative society from investments with a co-operative bank would be entitled for deduction under section 80P(2)(d). Further, for the purpose of section 80P(2)(d), co-operative bank should be considered as co-operative society. Accordingly, the deduction claimed by assessee under section 80P(2)(d) in respect of interest derived from investments with the co-operative banks was to be allowed.
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Deduction under section 80P(2)(d) - Co-operative society - Allowability - Interest on investments with co-operatives banks
Assessee, co-operative society, earned interest income from co-operative banks and sinking fund and claimed the same as deduction under section 80P(2)(d). AO denied the said claim of the assessee on the ground that the claim of deduction under section 80P(2)(d) was not allowable after insertion of sub-section (4) by the Finance Act, 2006 w.e.f. 1-4-2007. Held: Interest income derived by a co-operative society from investments with a co-operative bank would be entitled for deduction under section 80P(2)(d). Further, for the purpose of section 80P(2)(d), co-operative bank should be considered as co-operative society. Accordingly, the deduction claimed by assessee under section 80P(2)(d) in respect of interest derived from investments with the co-operative banks was allowed. However, the deduction claimed under section 80P(2)(d) in respect of interest on sinking fund was disallowed.
Followed:Pr. CIT v. Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn-HC) : 2017 TaxPub(DT) 1748 (Karn-HC) and Surat Vankar Sahakari Sangh Ltd. v. Asstt. CIT (2016) 421 ITR 134 (Guj-HC) : 2016 TaxPub(DT) 3733 (Guj-HC).
REFERRED :
FAVOUR : Partly in favour of assessee.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 80P(2)(d)
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