M/S. BHARAT BEEDI WORKS PRIVATE LIMITED,MANGALURU vs. DEPUTY COMMISIONER OF INCOME TAX, CENTRAL CIRCLE - 2, MANGALURU

disallowance under Section 14A can be made\ntowards the interest expenditure where the Appellant's\ninterest-free funds exceed its interest-free investments.\nFor the above Grounds and for such other Grounds which\nmay be allowed by the Honourable Members to be urged\nat the time of hearing, it is prayed that the aforesaid\nappeal be allowed.”\nPage

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED ,MANGALURU vs. ASSISTANT COMMISIONER OF INCOME TAX, CIRCLE - 2(1) , MANGALURU

Bench: Shri Laxmi Prasad Sahu\Nand\Nshri Soundararajan K.\Nita Nos.642 To 645/Bang/2024\N Assessment Years : 2017-18 To\N2020-21\Nm/S. Bharat Beedi Works\Nprivate Limited,\Ngolden Jubilee Building,\Nbharath Bagh,\Nkadri Road,\Nmangaluru – 575 002.\Npan: Aaacb9001B\Nappellant\Nassessee By\Nrevenue By\N: Shri Chythanya .K, Sr.\Nadvocate\N: Shri E. Shridhar, Cit-Dr\Ndate Of Hearing\Ndate Of Pronouncement\Norder\Nper Bench\Nthese Are The Appeals Filed By The Assessee Challenging The Orders Of\Nthe Ld.Cit(A) -2, Panaji Dated 30/01/2024 In Respect Of The A.Ys.2017-18,\N2018-19, 2019-20 & 2020-21. The Grounds Raised By The Assessee For\Neach Of The Assessment Years Are Extracted Hereunder For The Sack Of\Nconvenience.\Npage 2 Of 74\Nita Nos.642 To 645/Bang/2024\N Assessment Year 2017-18:\N“1. The Impugned Orders Of The Lower Authorities Are Not\Njustified In Law & On The Facts & Circumstances Of The\Ncase.\N2. The Impugned Assessment Proceedings & The\Nimpugned Assessment Order Under Section 143(3) Dated\N29.11.2021 Are Bad & Non-Est Since The Notice Under\Nsection 143(2) Dated 13.08.2018 Was Issued Without\Naffixing Any Signature Either Manually Or Digitally.\N3. Without Prejudice To The Above, Impugned Assessment\Nproceedings & The Impugned Assessment Order Under\Nsection 143(3) Dated 29.11.2021 Are Bad & Non-Est\Nbeing Based On The Notice Under Section 143(2) Dated\N13.08.2018 Which Is Vague, Without Of Application Of Mind\Nand Contrary To Section 143(2) & Applicable Board\Ncirculars & Instructions.\N4. As Regards Disallowance Under Section 14A U/S Rule\N8D(2)(Ii):\N4.

2)(ii) without first recording the\nexact expenditure incurred to earn exempt income to justify\nthe impugned disallowance.\nPage 3 of 74\nITA Nos.642 to 645/Bang/2024\n4. 5. The Learned AO was not justified in making any\ndisallowance under Section

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED,MANGALURU vs. DEPUTY COMMISIONER OF INCOME TAX, CENTRAL CIRCLE - 2, MANGALURU

In the result, all the appeals filed by the assessee are allowed

2)(ii) without first recording the\nexact expenditure incurred to earn exempt income to justify\nthe impugned disallowance.\n\nPage 3 of 74\nITA Nos.642 to 645/Bang/2024\n4. 5. The Learned AO was not justified in making any\ndisallowance under Section

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK ,BENGALURU vs. INCOME-TAX OFFICE, WARD-5(2)(1), BENGALURU

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year Ground Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

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

In the result, the appeals filed by Revenue are allowed and the COs\nfiled by the assessee are allowed for statistical purposes

disallowance under\nsection 80P(2)(d) of the Act.\n5.\nAs regards the Assessment Years 2018-19 and 2020-21, the AO\nnoticed that the assessee had claimed deduction under section 80P(2)(a)(i)\nof the Act for the interest income earned from investments with co-\noperative banks. The AO was of the view that the aforesaid interest income

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1) , BANGALORE

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year Ground Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year Ground Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

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

In the result, the appeals filed by Revenue are allowed and the COs\nfiled by the assessee are allowed for statistical purposes

disallowance under\nsection 80P(2)(d) of the Act.\n5. As regards the Assessment Years 2018-19 and 2020-21, the AO\nnoticed that the assessee had claimed deduction under section 80P(2)(a)(i)\nof the Act for the interest income earned from investments with co-\noperative banks. The AO was of the view that the aforesaid interest income

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year\nGround Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD- 5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year Ground Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. THE INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year Ground Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\n\nPage 14 of 48\n\nITA Nos. 1052 to 1060/Bang/2023\n\nAppeal No.\n\n Assessment Year\n\nGround Number\n\nITA No. 1052/Bang/2023\n2012-13\n2, 5

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME-TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year Ground Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

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

In the result both the appeals of the Revenue as well as\nCos of the Assessee for the Asst

5(b) and holds\nlicense under section 22 of the Banking regulation Act 1949,\nsuch interest are to be considered under the head ‘income\nfrom other sources' & the deduction under section 80P(2)(d) is\nnot available on such Interest on investment. However the\ncost of fund and related administrative expenses in respect of\nearning such interest income should also

THE KARNATAKA STATE CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(1), BANGALORE

In the result, the appeals filed by the assessee stands partly\nallowed as indicated herinabove

disallowed\nunder section 80P(2)(a)(i) in the pending appeals has been\nchallenged by the assessee for the years under consideration in\nfollowing grounds:\nPage 14 of 48\nITA Nos. 1052 to 1060/Bang/2023\nAppeal No.\n Assessment Year Ground Number\nITA No. 1052/Bang/2023\n2012-13\n2, 5

M/S. CANARA BANK (ERSTWHILE SYNDICATE BANK),BANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(1), BANGALORE

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

2. UNITED GLASS MFG CO. LTD. 2012 (9) TMI 914 - SUPREME COURT 3. SOUTH INDIAN BANK LTD. [2021] 438 ITR 1 (SC) 4. CANARA BANK 2023 (1) TMI 243 - KARNATAKA HIGH COURT 5. DSP MERILL LYNCH CAPITAL [2023] 21 ITR-OL 710 (Born) LTD. 6. CANARA BANK. ERSTWHILE 2023 (5) TMI 543 - ITAT SYNDICATE BANK) BANGALORE 7. THE KARNATAKA BANK

M/S. CANARA BANK (ERSTWHILE SYNDICATE BANK),BANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(1), BANGALORE

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

2. UNITED GLASS MFG CO. LTD. 2012 (9) TMI 914 - SUPREME COURT 3. SOUTH INDIAN BANK LTD. [2021] 438 ITR 1 (SC) 4. CANARA BANK 2023 (1) TMI 243 - KARNATAKA HIGH COURT 5. DSP MERILL LYNCH CAPITAL [2023] 21 ITR-OL 710 (Born) LTD. 6. CANARA BANK. ERSTWHILE 2023 (5) TMI 543 - ITAT SYNDICATE BANK) BANGALORE 7. THE KARNATAKA BANK

M/S. THE BHAVASARA KSHATRIYA CO-OPERATIVE SOCIETY LIMITED,MYSURU vs. INCOME TAX OFFICER, WARD-2(1), MYSURU

disallowed the deduction under Section\n80P(2)(a)(i) holding that the appellant/assessee is neither a primary\nagricultural credit society nor a primary co-operative agricultural and\nrural development bank. The Ld.AO therein held that the appellant/assessee\nis a \"co-operative bank\" and thus, was hit by the provisions of Section\n80(P)(4) and was not entitled