INCOMETAX OFFICER, WARD 1, UDUPI, UDUPI vs. BRAHMAVARA VYAVASAYA SEVA, BRAHMAVARA

Bench: Shri George George K & Shri Waseem Ahmed

B" BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA Nos.656, 667, 668/Bang/2024 Assessment Years : 2017-18, 2018-19, 2020-21 ITO, Vs. M/s. Brahmavara Vyavasaya Seva, Ward - 1, Head Office Unnathi, Brahmavar Udupi. Udupi Taluk, Udupi – 576 213. PAN: AAAAB 2992 F APPELLANT RESPONDENT C.O.Nos.10, 11, 12/Bang/2024 (in ITA Nos.656

INCOME TAX OFFICER, WARD 1, UDUPI, UDUPI vs. BRAHMAVARA VYAVASAYA SEVA, BRAHMAVARA

Bench: Shri George George K & Shri Waseem Ahmed

B" BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA Nos.656, 667, 668/Bang/2024 Assessment Years : 2017-18, 2018-19, 2020-21 ITO, Vs. M/s. Brahmavara Vyavasaya Seva, Ward - 1, Head Office Unnathi, Brahmavar Udupi. Udupi Taluk, Udupi – 576 213. PAN: AAAAB 2992 F APPELLANT RESPONDENT C.O.Nos.10, 11, 12/Bang/2024 (in ITA Nos.656

SHARANABASAVESHWAR CREDIT SOUHARD SAHAKRI NI HALINGALI,BAGALKOT vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1, BIJAPUR

In the result, the appeal by the assessee is partly allowed for statistical purposes

b) M/s. Manjunatheshwara Credit Co-op. Society Ltd. v. ITO, ITA No.2238/Bang/2019 dated 4.10.2021. (c) Judicial Employees House Building Coop Society Ltd. in ITA No.108/Bang/2023 dated 11.04.2023. 8. In the rejoinder, the ld. AR submitted that in the case of PCIT v. Totagars Co-operative Sale Society {2017] 78 taxmann.com 169 (Karnataka) order dated 05.01.2017, the Hon’ble Court

SANGAM CO-OP CREDIT SOCIETY,BAGALKOT vs. INCOME-TAX OFFICER WARD-2 , BAGALKOT

In the result, both the appeals by the assessee are partly allowed for statistical purposes

b) M/s. Manjunatheshwara Credit Co-op. Society Ltd. v. ITO, ITA No.2238/Bang/2019 dated 4.10.2021. (c) Krishnarajapet Taluk Agri Pro Co-op Marketing Society Ltd. v Pr.CIT, ITA No. 514/Bang/2021 dated 08.02.2022. (d) M/s Jyothi Pattin Souhard Sahkari Niyamit, APMC, Gadag vs Pr.CIT, ITA No. 650/Bang/2020 dated 13.08.2021 8. The ld. DR submitted that the case laws of the jurisdictional High

SANGAM CO-OP CREDIT SOCIETY,BAGALKOT vs. INCOME-TAX OFFICER WARD 1& TPS, BAGALKOT

In the result, both the appeals by the assessee are partly allowed for statistical purposes

b) M/s. Manjunatheshwara Credit Co-op. Society Ltd. v. ITO, ITA No.2238/Bang/2019 dated 4.10.2021. (c) Krishnarajapet Taluk Agri Pro Co-op Marketing Society Ltd. v Pr.CIT, ITA No. 514/Bang/2021 dated 08.02.2022. (d) M/s Jyothi Pattin Souhard Sahkari Niyamit, APMC, Gadag vs Pr.CIT, ITA No. 650/Bang/2020 dated 13.08.2021 8. The ld. DR submitted that the case laws of the jurisdictional High

M/S. PRATHAMIKA KRUSHI PATTINA SAHAKARA NIYAMITA,HOSAPETE vs. INCOME TAX OFFICER, WARD-2, BALLARI

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri Laxmi Prasad Sahuprathamika Krishi Pattina Vs The Income Tax Officer Sahakara Sangha Niymit Ward - 2 No. 350, Ward No. 15, Hospet 583201 Amaravathi Village, Hospet Tq. Ballari - 583201 Pan – Aaajp0326N (Appellant) (Respondent) Assessee By: Shri Siva Prasad Reddy, Irs (Retd) Revenue By: Shri Ganesh R. Ghale, Standing Counsel Date Of Hearing: 13.02.2023 Date Of Pronouncement: 14.02.2023 O R D E R Per: Laxmi Prasad Sahu, A.M. This Is An Appeal Filed By The Assessee Against The Order Passed By The Learned Cit(A)/Nfac, Delhi In Appeal Din & Order No. Itba/Nfac/S/ 250//2022-23/1047496227(1) Dated 18.11.2022 For Ay 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1. The Impugned Assessment Order Made U/S 143(3) Of The Act Dated, 25-11-2019, Is Arbitrary & Opposed To The Facts Of The Case & The Principles Of Natural Justice & Therefore, The Same Is Liable To Be Vacated As Void. 2. The Learned Cit(A) Failed To Appreciate: (I) That The Interest Income Accruing From The Investments Made In Statutory Compliance Of The Provisions Of The State Co-Operative Societies Act, 1959 Is Eligible For The Deduction As Business Income U/S 80P(2)(A)(I) Of The Act.

B” (SMC) BENCH, BENGALURU Before Shri Laxmi Prasad Sahu, Accountant Member Prathamika Krishi Pattina vs The Income Tax Officer Sahakara Sangha Niymit Ward - 2 No. 350, Ward No. 15, Hospet 583201 Amaravathi Village, Hospet Tq. Ballari - 583201 PAN – AAAJP0326N (Appellant) (Respondent) Assessee by: Shri Siva Prasad Reddy, IRS (Retd) Revenue by: Shri Ganesh R. Ghale, Standing Counsel Date of hearing

INCOME TAX OFFICER WARD-5(2)(3), BANGALORE vs. M/S THE KARNATAKA STATE CO-OPERATIVE HOUSING FEDERATION LIMITED , BANGALORE

In the result, the appeal filed by the Revenue is allowed for statistical purposes

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

section 80P of the Act with effect from 001.04.2007, the assessee is not entitled to the benefit of deduction u/s 80P(2)(a)(i) of the Act. The A.O. also placed reliance on the judgment of the Hon’ble Apex Court in the case of The Citizen Co-operative Society Ltd. v. ACIT reported

INCOME TAX OFFICER, WARD-7(2)(1), BENGALURU, BANGALORE vs. M/S. BANGALORE CREDIT CO-OPERATIVE SOCIETY LIMITED , BANGALORE

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

gains that are derived from the export. There cannot be any doubt that interest income earned by members credit co-operative society can said to be “attributable to” the business of providing credit facilities to its members. Kindly note that the deduction u/s. 80P is not with respect to an activity but with reference to business as a whole

THE BELTHANGADY CO-OPERATIVE AGRICULTURAL SANGHA LIMITED,BELTHANGADY vs. INCOME TAX OFFICER, WARD-1, , PUTTUR

In the result appeal of the assessee is hereby partly allowed for

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

b) of the Banking Regulation Act, 1949 as applicable to co-operative societies, no co-operative society shall carry on banking business in India, unless it is a co-operativebank and holds a licence issued in that behalf by the RBI. As opposed to this, a primary agricultural credit society is a co-operative society, the primary object of which

M/S. PRATHAMIKA KRUSHI PATTINA SAHAKARA NIYAMITA,HOSAPETE vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, KALABURGI

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

b) Whether is there any Yes, as above submitted. obligation on assessee to invest its surplus funds with the banks. (c) Whether the interest earned The issue is settled by the from deposits / investments Hon’ble Supreme Court in the in to other societies / banks above mentioned case holding had constituted to be that the interest income is business income

INCOMETAX OFFICER, WARD-1(1), TIPTUR vs. SRIUDAYARAVI CREDIT CO-OP, TIPTUR

In the result, appeals of the Revenue are dismissed

Bench: Shri.Laxmi Prasad Sahu & Shri. Keshav Dubey

gains of business attributable to any one or more of such activities : . . ." e. Section 80P was amended by the Finance Act, 2006 with effect from April 1, 2007 and sub-section (4) was inserted thereto. This sub section (4) reads as under : "(4) The provisions of this section shall not apply in relation to any cooperative bank other than

M/S. PRATHAMIKA KRUSHI PATTINA SAHAKARA NIYAMITA,HAGARIBOMMANAHALLI vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, KALABURGI

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

b) Whether is there any Yes, as above submitted. obligation on assessee to invest its surplus funds with the banks. (c) Whether the interest earned The issue is settled by the from deposits / investments Hon’ble Supreme Court in the in to other societies / banks above mentioned case holding had constituted to be that the interest income is business income

HOTEL OWNER'S CREDIT CO-OPERATIVE SOCIETY,MYSURU vs. INCOME TAX OFFICER, WARD-1(1), MYSURU

In the result, the appeal filed by the assessee is partly allowed

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

B Bench Bangalore is binding on the Income-tax Authorities. Thus, the Learned Income tax Officer should have restrained from passing the order U/s 143(3) of the IT Act 4 The Secretary, Hotel Owner’s Credit Co-op Society 6. Without prejudice to the above, even assuming that another view is possible in the matter of allowability of deduction

CANARA BANK,BENGALURU vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(1), BANGALORE, BENGALURU

Bench: SHRI WASEEM AHMED, ACCOUNTANT MEMBER\nAND\nSHRI KESHAV DUBEY, JUDICIAL MEMBER\nITA No.210/Bang/2024\nAssessment Year: 2017-18\nM/s Canara Bank\nFM wing, Head Office,\n112, J.C. Road\nBangalore 560002\nVs.\nDCIT\nCircle-2(1)(1)\nBangalore\nPAN NO : AAACC6106G\nAPPELLANT\nRESPONDENT\nITA No.222/Bang/2024\nAssessment Year: 2017-18\nDCIT\nCircle-2(1)(1)\nBangalore\nVs.\nM/s Canara Bank\nFM wing, Head Office,\n112, J.C. Road\nBangalore 560 002\nAPPELLANT\nRESPONDENT\nITA No.1154/Bang/2023\nAsses

80P. The Apex court\nhad categorically held that investments made by a banking concern\nare part of the business of banking. In the present case also the\ninvestments held by banks are treated only as part of the\nbusiness of banking only but not as Stock in Trade but as a Capital Asset.\n8.4 Further, both the parties also relied

M/S. SHRI MAHISHASURAMARDINI URBAN CO-OPERATIVE CREDIT SOCIETY LIMITED,HAVERI vs. INCOME TAX OFFICER, WRD-1, HAVERI

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri Chandra Poojari

capital, if not immediately required to be lent to the members, they cannot keep the said amount idle. If they deposit this amount in bank so as to earn interest, the said interest income is attributable to the profits and gains of the business of providing credit facilities to its members only. The society is not carrying on any separate

SREE CAUVERY SOUHARDA CREDIT SAHAKARI SANGHA NIYAMITHA,BENGALURU vs. INCOME TAX OFFICER WARD 1(1)(1), BENGALURU

Bench: Shri Waseem Ahmed & Shri Soundararajan K

B’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA No.1854 & 1855/Bang/2025 Assessment Year: 2018-19 Sree Cauvery Souharda Credit Sahakari Vs. The Income Tax Officer, Sangha Niyamitha, Ward – 1(1)(1), No.7, Kodava Samaja Building, Bangalore. 1st Main Road, Vasanthnagar, Bangalore – 560 002. PAN – AAAJS 2172 F APPELLANT RESPONDENT Assessee by : Smt. Sumana

KRISHNARAJAPET TALUK AGRI PRO CO OP MARKETING SOCIETY,MANDYA vs. PRINCIPAL COMMISSIONER OF INCOME TAX, MYSORE

In the result, appeal of the assessee is treated as partly allowed for statistical purpose

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2015-16 M/S. Krishnarajapet Taluk Agri Pro Co-Op Vs. Pr. Commissioner Of Income Tax, Marketing Society Ltd., Mysore. K. R. Pet, K. R. Pet Taluk, Mandya 571 426. Pan : Aaaak 4566 E Appellant Respondent Assessee By : Shri. Shankar Gowda H, Fca Revenue By : Shri. Sankar Ganesh K, Jcit(Dr)(Itat), Bengaluru. Date Of Hearing : 08.02.2022 Date Of Pronouncement : 08.02.2022 O R D E R Per N. V. Vasudevan: V. Vasudevan

capital, if not immediately required to be lent to the members, they cannot keep the said amount idle. If they deposit this amount in bank so as to earn interest, the said interest income is attributable to the profits and gains of the business of providing credit facilities to its members only. The society is not carrying on any separate

NAGINI COOPERATIVE CREDIT SOCIETY LIMITED ,BANGALORE vs. INCOME TAX OFFICER, WARD-6(2)(1), BANGALORE

In the result, the appeals filed by the assessee are allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

capital of the society and shall be deposited into Page 3 of 15 ITA Nos. 25 to 27/Bang/2025 the co -operative Bank hence there is a Business nexus to the earning of interest income hence eligible for deduction under section 80P(2)(a)(i) The reliance is placed on following case laws a. Lankapalli PACS Ltd V/s ITO, held