AAYKAR KARMACHARI SAHKARI PATSANSTHA MARYADIT,NASHIK vs. CIT-A, LUCKNOW
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that interest income earned by a cooperative society on deposits made with a cooperative bank qualifies for deduction under Section 80P(2)(d) of the Act. The ratio of the Totgar's Cooperative Sale Society Ltd. judgment was distinguished for this specific type of income.
What were the facts?
The assessee, a cooperative society, claimed deduction under Section 80P(2)(d) for interest income earned on deposits made with a cooperative bank. The Assessing Officer denied this deduction, relying on Supreme Court and High Court judgments.
What were the issues?
The primary issue was whether interest income earned by a cooperative society on deposits with a cooperative bank is eligible for deduction under Section 80P(2)(d).
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(2)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Totgars Co-operative Sale Society Ltd. v. ITO1,283 citing322 ITR 283 · 2010 · SC
- Pr. Commissioner of Income Tax and Anr. v. Totagars Cooperative Sale Society762 citing392 ITR 74 · 2017 · HC
Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI INTURI RAMA RAO
आदेश / ORDER
PER INTURI RAMA RAO, AM:
This is an appeal filed by the assessee directed against the order of Addl./JCIT(A)-1, Lucknow dated 19.03.2024 for the assessment year 2021-22.
Brief facts of the case are as under :
The appellant is a Primary Credit Cooperative Society registered under the Maharashtra Cooperative Societies Act, 1960. It is engaged in the business of providing credit facilities to its Members. The Return of Income for the A.Y. 2021-22 was filed on 30.03.2022 declaring total income of Rs.5,60,760/-. Return was processed by the CPC vide intimation dated 30.11.2022 passed u/s.143(1) determining total income at Rs.11,18,390/-.
Being aggrieved by the said intimation, an appeal was filed before the CIT(A)/Addl/JCIT(A) who on perusal of income tax return observed that the appellant reported income from business and profession amounting to Rs.30,89,855/- claiming the deduction u/s.80P(2)(a)(i) of the Act and income from other sources at Rs.11,18,388/-. Additionally, deduction u/s.80P(2)(d) was claimed for Rs.5,57,630/- as Income from other sources. The Addl/JCIT(A) placing reliance on the judgment of Hon’ble Apex Court in the case of Totgar’s Cooperative Sale Society Ltd. Vs. ITO (2010 322 ITR 283 (SC) and the judgment of Hon’ble Karnataka High Court in the case of PCIT & Ors Vs. Totagars Cooperative Sale Society confirmed the action of CPC denying the deduction u/s.80P(2)(d) of the Act claimed at Rs.5,57,630/-.
Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
I heard the rival submissions and perused the relevant material on record. The issue in the present appeal relates to the allowability of deduction u/s.80P(2)(d) in respect of interest income earned by a Cooperative Society formed with the object of accepting deposits from Members and lending money to its Members, which is no more res integra in view of catena of decisions passed by this Bench on this very issue.
In the present case, I find that admittedly the interest income was earned on deposits made with a Cooperative Bank. On perusal of provisions of section 80P(2)(d), it is clear that the income derived by a cooperative society from its investment held with other cooperative societies shall be exempt from the total income of a cooperative society. Therefore, what is relevant for claiming of deduction u/s 80P(2)(d) is that interest income should have been derived from the investment made by the assessee cooperative society with any other cooperative society. This issue was considered by the Hon’ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon’ble High Court after referring to the decision of the Hon’ble Supreme Court in the case of Totgar’s Co-operative Sale Society Ltd.Vs. ITO (2010) 322 ITR 283(SC) held that the ratio of decision of the Hon’ble Supreme Court is not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. In the light of this discussion, I am of the considered opinion that the interest income earned by cooperative society on deposits made out of surplus funds with cooperative bank qualifies for deduction under the provisions of section 80P(2)(d) of the Act. Therefore, the grounds of appeal raised by the appellant stand allowed.
7. In the result, the appeal filed by the appellant is allowed.
Order pronounced on this 14th day of August, 2024.
More judgments on Section 80P(2)(d)
- Duddukuru Primary Agricultural Cooperative… vs ITO, Ward - 1, TadepalligudemITA 258/VIZ/2026[2015-16]Status: Disposed16 Oct 2026AY 2015-16
- S R P Jutha 13 Rajkot VI and Gr S Ma, Rajkot vs ITO WD 1(2)(1) Rajkot, RajkotITA 951/RJT/2025[2017-18]Status: Disposed9 Oct 2026AY 2017-18
- Poonam Chambers B Wing Commercial Premises… vs Deputy Commissioner Income Tax, MumbaiITA 7044/MUM/2026[2021-2022]Status: Disposed8 Oct 2026AY 2021-2022
- Poonam Chambers B Wing Commercial Premises… vs Deputy Commissioner Income Tax, MumbaiITA 7043/MUM/2026[2019-20]Status: Disposed8 Oct 2026AY 2019-20
- Suvarnakarara Co-Operative Society Limited… vs Income Tax Officer, Ward - 2, KarwarITA 210/PAN/2025[2020-21]Status: Disposed7 Oct 2026AY 2020-21
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