BHIMA SAHAKARI SAKHAR KARKAHANA SEVAK SAHAKARI PATSANSTHA TAKALI,SOLAPUR vs. INCOME-TAX OFFICER, WARD -2, PANDHARPUR

The only issue raised in this appeal is against denial of deduction u/s 80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) in respect of interest income received from investments/FDRs in other Co-operative societies and nationalized banks.

Briefly stated, the facts of the case are that the assessee is a Co-operative society, who filed return of income declaring total income at Rs.55,050 after claiming deduction u/s 80P amounting to Rs.33,41,655. The Assessing Officer (AO) denied the deduction, inter-alia, on interest income of Rs.22,30,655 by considering the provisions of section 80P(2)(d) of the Act. The ld. CIT(A) affirmed the action of the AO. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.

I have heard both the sides and gone through the relevant material on record. The only issue pressed in this appeal is against the denial of deduction u/s 80P(2) in respect of interest income. The claim of the assessee is that the deduction was claimed u/s 80P(2)(a)(i) and the same ought to have been allowed. I find that similar issue has been considered by the Pune Tribunal in Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO (2020) 120 taxmann.com 10 (Pune-Trib). Para 10 is relevant for the purpose, which reads as under: “10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society