Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, C BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
PER JAGADISH, A.M: Aforesaid appeal filed by the assessee for Assessment Year (AY) 2020-21 arises out of the order of Learned Commissioner of Income Tax (Appeals), [NFAC], Delhi (hereinafter “CIT(A)”] dated 20.02.2024. 2. The only effective ground of appeal is against confirming the disallowances of interest from cooperative bank of 21,63,133 u/s 80P(2)(d) made by the Assessing Officer.
The assessee is a co-operative Society registered under the Tamilnadu Co-op Societies Act 1983 and engaged in activities of providing credit facilities to its members. The assessee has earned interest of Rs 21,68,133/- from Erode Central Co-op Bank Ltd and claimed deduction of same u/s 80P(2)(d) of the Act. The Assessing Officer disallowed the claim holding that a co-operative bank is urban commercial bank and does not fall under the purview of co-operative society referred in section 80P(2)(d) of the Act. The Ld. CIT(A) has dismissed the appeal of assessee holding that interest earned from the Co-operative bank is neither allowable u/s 80P(2)(a)(i) or 80P(2)(d)
The Ld. Counsel for the assessee has argued that the issue is squarely covered by the Hon'ble Madras High Court in the case of Thorapadi Urban Co-op Credit Society Limited & Another Vs ITO [WP. Nos.11172, 11174, 11177 and 11180 of 2023 and WMP Nos. 11034, 11038, 11044 and 11048 of 2023 dated 10.10.2023 and the same has been followed by the Co-ordinate Bench of Hon'ble ITAT, Chennai in the case of the Erode City Municipal Corporation Emp. Co-op. T & C Limited K831 vs. The Assessing Officer, Ward-1(1), Erode in ITA Nos.509 & 510/Chny/2024 order dated 22.07.2024 in respect of interest income received from the Co-operative Bank. :- 2 -:
The Ld. DR relied on the order of the authorities below.
We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The assessing officer has disallowed the claim of deduction u/s 80P(2)(d) of interest Rs 21,68,133/- from Erode Central Co-Op Bank Ltd on the ground that co-operative banks are not co-operative society as referred in section 80p(2)(d) of the Act. On identical facts, the Co- ordinate Bench of this Tribunal in the case of the Erode City Municipal Corporation Emp. Co-op. T & C Limited K831 vs. The Assessing Officer, Ward-1(1), Erode, supra held the interest earned from co- operative bank registered under Co-oprative society Act are eligible for deduction u/s 80P(2)(d) as under: