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

Bench: Shri George George K & Shri Waseem Ahmed

disallowance under section 80P(2)(d) of the Act. 5. As regards the Assessment Years 2018-19 and 2020-21, the AO noticed that the assessee had claimed deduction under section 80P(2)(a)(i) of the Act for the interest income earned from investments with co- operative banks. The AO was of the view that the aforesaid interest income

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

Bench: Shri George George K & Shri Waseem Ahmed

disallowance under section 80P(2)(d) of the Act. 5. As regards the Assessment Years 2018-19 and 2020-21, the AO noticed that the assessee had claimed deduction under section 80P(2)(a)(i) of the Act for the interest income earned from investments with co- operative banks. The AO was of the view that the aforesaid interest income

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.

iv) BDCC bank Reserve fund interest Rs.5,379/- Total Rs.36,55,182/- 4. During the course of assessment proceedings the learned A.R. of the assessee briefed about the provisions of Section 80P(2)(d)/ 80P(2)(a)(i) of the Act . It was asked to explain how the above amount Rs.36,55,182/- qualify for deduction under Chapter

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

disallowed the deduction u/s 80P(2)(d) of the Act. It is submitted that the investments were made out of surplus funds and relied on the decision of Hon’ble Karnataka High Court in the decision of PCIT v. Totagars Co-operative Sale Society 392 ITR 74 wherein it was held that the interest earned on deposits

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

disallowed by the Assessing Officer. The Assessing Officer held that the assessee is primarily engaged in the business of banking and in view of the insertion of sub- 2 M/s.The Karnataka State Co-op.Ho.Fed.Ltd. section (4) to 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

M/S. SAVANOOR PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD.,SAVANOOR, ,PUTTUR vs. INCOME TAX OFFICER, WARD-1, , PUTTUR

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

Bench: Shri George George K & Shri Chandra Poojariassessment Year : 2018-19 M/S. Savanoor Primary Agricultural Vs. Ito, Co-Operative Society Ltd., Ward – 1, Savanoor Co-Operative Agricultural Puttur. Bank Ltd., Saanoor, Savanoor Puttur – 574 202, Karnataka. Pan : Aaeat 1118 M Appellant Respondent Assessee By : Ms. Harsha J, Advocate Revenue By : Shri. Subramanian S, Jcit(Dr)(Itat), Bengaluru. Date Of Hearing : 08.01.2024 Date Of Pronouncement : 09.01.2024

iv. Deduction under section 80P(2)(e) of the Act on the income earned from storing the pledged agricultural produce against loans given (Ground 9) Page 4 of 10 8. We shall adjudicate the above issues as under: 9. Issue Nos.1 and 2: Deduction claimed under section 80P(2)(a)(i) and 80P2)(d) of the Act (Grounds

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

disallowance of NPA provision would result in enhanced profits eligible for the deduction u/s 80P(2)(a)(i) and consequently, there was no prejudice to the Revenue to justify revision u/s 263. 2.4 The learned PCIT failed to appreciate that it is incumbent on his part to point out a specific `error’ in the assessment order to assume jurisdiction

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

iv. They do not have voting right or contest in the election of the society. Their life in the society is limited to 3 years or till completion of the services provided by them for services utilized by them. They are not prominent members like that of normal / regular members. They are contributors to the surplus but are not participators

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

iv) The restrictive clause in sub-section (4) of section 80P applies only a co-operative bank and not to co- operative societies or to co-operative societies extending credit facilities to its members. Further, only a bank having obtained the license under the Banking Regulation Act, 1949, shall be covered under the said restrictive clause u/s 80P

INCOME-TAX OFFICER, WARD-1, UDUPI, UDUPI vs. BRAHMAVARA VYAVAYASAYA SEVA, BRAHMAVARA

disallowance under section 80P(2)(d) of the Act. 5. As regards the Assessment Years 2018-19 and 2020-21, the AO noticed that the assessee had claimed deduction under section 80P(2)(a)(i) of the Act for the interest income earned from investments with co- operative banks. The AO was of the view that the aforesaid interest income

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

Bench: Shri Waseem Ahmed & Shri Soundararajan K

disallowances of deduction under section 80P(2)(a)(i) of the Act for Rs. 25,22,742/- and added to the total income of the assessee. 5. The aggrieved assessee preferred an appeal before the learned CIT(A). 6. Before the learned CIT(A), it was submitted that the assessee is registered under the Karnataka Souharda Sahakari

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.

IV. Janata Seva Co-Operative Bank Limited of Rs.7,20,00,000/- V. Punjab National Bank Rs. 20,000/- Total Investment's Rs.10,50,20,000 the source of funds is interest bearing deposit received from members, the interest paid to the member is at 8 percent per annum, the total interest paid to members on the deposit

NAGINI CO-OPERATIVE 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.

IV. Janata Seva Co-Operative Bank Limited of Rs.7,20,00,000/- V. Punjab National Bank Rs. 20,000/- Total Investment's Rs.10,50,20,000 the source of funds is interest bearing deposit received from members, the interest paid to the member is at 8 percent per annum, the total interest paid to members on the deposit

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.

IV. Janata Seva Co-Operative Bank Limited of Rs.7,20,00,000/- V. Punjab National Bank Rs. 20,000/- Total Investment's Rs.10,50,20,000 the source of funds is interest bearing deposit received from members, the interest paid to the member is at 8 percent per annum, the total interest paid to members on the deposit

M/S. BHAVASAR KSHATRIYA CO-OPERATIVE CREDIT SOCIETY LIMITED,HUBBALLI vs. ASSISTANT DIRECTOR OF INCOME TAX, CPC, BANGALORE

In the result, all the three appeals filed by assessee stands allowed for statistical purposes

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Appeal No. Appellant Respondent Year The Income-Tax

iv) in the case of income of the nature referred to in clause (viii) of sub- section (2) of section 56, a deduction of a sum equal to fifty per cent of such income and no deduction shall be allowed under any other clause of this section.]" 2.14. We have heard the submissions advanced by both sides on this aspect

M/S. BHAVASAR KSHATRIYA CO-OPERATIVE CREDIT SOCIETY LIMITED,HUBBALLI vs. INCOME TAX OFFICER WARD-1(1), HUBBALLI

In the result, all the three appeals filed by assessee stands allowed for statistical purposes

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Appeal No. Appellant Respondent Year The Income-Tax

iv) in the case of income of the nature referred to in clause (viii) of sub- section (2) of section 56, a deduction of a sum equal to fifty per cent of such income and no deduction shall be allowed under any other clause of this section.]" 2.14. We have heard the submissions advanced by both sides on this aspect

M/S. BHAVASAR KSHATRIYA CO-OPERATIVE CREDIT SOCIETY LIMITED,HUBBALLI vs. INCOME TAX OFFICER WARD-3(3), HUBBALLI

In the result, all the three appeals filed by assessee stands allowed for statistical purposes

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Appeal No. Appellant Respondent Year The Income-Tax

iv) in the case of income of the nature referred to in clause (viii) of sub- section (2) of section 56, a deduction of a sum equal to fifty per cent of such income and no deduction shall be allowed under any other clause of this section.]" 2.14. We have heard the submissions advanced by both sides on this aspect

INCOME TAX OFFICER,WARD-1, HOSPET vs. GAYATRI PATTINA SOUHARDA SAHAKARI SANGHA NIYAMITHA, HOSPET, HOSPET

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

section 194J & 194H of the Act respectively & therefore the disallowance u/s 40(a)(ia) of the Act amounting to Rs.5,62,299/- was confirmed by the ld. CIT(A)/NFAC. iv) Lastly, with regard to the disallowance of the deduction u/s 80P(2