| The Tax Publishers2022 TaxPub(DT) 5396 (Mum-Trib) INCOME TAX ACT, 1961
Section 80P(2)(d)
Interest earned on deposits kept with co-operative banks was to be treated as interest income earned from co-operative societies, accordingly such interest income was exempt under section 80P(2)(d).
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Deduction under section 80P(2)(d) - Co-operative society - Allowability as regards interest income earned from deposits kept with a co-operative bank -
Assessee a labour co-operative society engaged in the activity of removing of grass in BPT area, sweeping of BPT roads and other labour related work, earned interest income of Rs.3,26,288 from deposits kept with co-operative banks and claimed deduction of the same under section 80P(2)(d)/80P(2)(c)(ii). AO rejected the same that co-operative banks could not be considered as co-operative society within the meaning of section 80P(2)(d). Held: Though co-operative bank pursuant to the 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 enforced 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 claim of deduction under section 80P(2)(d).
Followed:Rena Sahakari Sakkar Karkhane Ltd. v. Pr. CIT ITA No. 1249/PUN/2018 dt. 7-1-2022 : 2022 TaxPub(DT) 787 (Pune-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 favour.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
B.R. BASKARAN, A.M.
Mumbai Kolsa Kamgar Sahakari Society v. ITO
ITA No. 720/Mum/2022
28 July, 2022
Assessee by : Sanjay Parikh
Department by : Naina Krishnakumar
The assessee has filed this appeal challenging the Order, dt. 12-3-2022 passed by learned Commissioner (Appeals), National faceless appeal Centre, Delhi and it relates to the assessment year 2014-15. The assessee is aggrieved by the decision of learned Commissioner (Appeals) in confirming the rejection of deduction claimed under section 80P(2)(d) of the Act in respect of interest income earned from deposits kept with a co-operative bank.
2. The assessee is a labour co-operative society engaged in the activity of removing of grass in BPT area, sweeping of BPT roads and other labour related work. The assessee, inter alia, had earned interest income of Rs.3,26,288 from deposits kept with co-operative banks. The assessee claimed deduction of the same under section 80P(2)(d)/80P(2)(c)(ii) of the Act. The assessing officer rejected the same. The Learned Commissioner (Appeals) also held that the co-operative banks cannot be considered as co-operative societies within the meaning of sec. 80P(2)(d) of the Act. Accordingly, he confirmed the order passed by the assessing officer in rejecting the deduction claimed under section 80P(2)(d) of the Act. Aggrieved, the assessee has filed this appeal.
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