BELLAD BAGEWADI KRISHI SEVA SAHAKARI BANK LIMITED,HUKKERI vs. INCOME TAX OFFICER, WARD-1, GOKAK

Bench: Shri Satbeer Singh Godara & Shri G.D. Padmahshalistay Application Nos.01, 02 & 03/Pan./2023 Arising Out Of Ita.Nos.11, 89 & 116/Pan./2022 Assessment Years 2017-2018, 2018-2019 & 2020-2021 Along With Ita.Nos.11, 89 & 116/Pan./2022 Assessment Years 2017-2018, 2018-2019 & 2020-2021 & Ita.Nos. 05 & 06/Pan./2020 Assessment Years 2007-2008 & 2008-2009 Bellad Bagewadi Krishi Seva The Income Tax Officer, Sahakari Sangh Bellad Ward-1, Bagewadi, Taluka Hukkeri, Dr. Ghogeri Building, Dist. Belagavi – 591 305 Vs. Belgaum Road, State Of Karnataka. Gokak – 591 307. Pan Aaaat0640C State Of Karnataka (Appellant) (Respondent) For Assessee : Shri Shivanand Halbhavi For Revenue : Shri N. Shrikanth Date Of Hearing : 10.07.2023 Date Of Pronouncement : 13.07.2023 Order

Section 80P(2)(a)(i) in the interest of justice.” 3. Both the learned representatives next invited our attention to the CIT(A)'s detailed discussion upholding the Assessing Officer’s action making sec.80P(2)(a)(i) deduction disallowance as under : “9. The Assessing Officer after verifying the details as enumerated in the case of M/s Totgar Co-operative Sale

BELLAD BAGEWADI KRISHI SEVA SAHAKARI BANK LIMITED,HUKKERI vs. INCOME TAX OFFICER, WARD-1, GOKAK

Bench: Shri Satbeer Singh Godara & Shri G.D. Padmahshalistay Application Nos.01, 02 & 03/Pan./2023 Arising Out Of Ita.Nos.11, 89 & 116/Pan./2022 Assessment Years 2017-2018, 2018-2019 & 2020-2021 Along With Ita.Nos.11, 89 & 116/Pan./2022 Assessment Years 2017-2018, 2018-2019 & 2020-2021 & Ita.Nos. 05 & 06/Pan./2020 Assessment Years 2007-2008 & 2008-2009 Bellad Bagewadi Krishi Seva The Income Tax Officer, Sahakari Sangh Bellad Ward-1, Bagewadi, Taluka Hukkeri, Dr. Ghogeri Building, Dist. Belagavi – 591 305 Vs. Belgaum Road, State Of Karnataka. Gokak – 591 307. Pan Aaaat0640C State Of Karnataka (Appellant) (Respondent) For Assessee : Shri Shivanand Halbhavi For Revenue : Shri N. Shrikanth Date Of Hearing : 10.07.2023 Date Of Pronouncement : 13.07.2023 Order

Section 80P(2)(a)(i) in the interest of justice.” 3. Both the learned representatives next invited our attention to the CIT(A)'s detailed discussion upholding the Assessing Officer’s action making sec.80P(2)(a)(i) deduction disallowance as under : “9. The Assessing Officer after verifying the details as enumerated in the case of M/s Totgar Co-operative Sale

BELLAD BAGEWADI KRISHI SEVA SAHAKARI BANK LIMITED,HUKKERI vs. INCOME TAX OFFICER, WARD-1, GOKAK

Bench: Shri Satbeer Singh Godara & Shri G.D. Padmahshalistay Application Nos.01, 02 & 03/Pan./2023 Arising Out Of Ita.Nos.11, 89 & 116/Pan./2022 Assessment Years 2017-2018, 2018-2019 & 2020-2021 Along With Ita.Nos.11, 89 & 116/Pan./2022 Assessment Years 2017-2018, 2018-2019 & 2020-2021 & Ita.Nos. 05 & 06/Pan./2020 Assessment Years 2007-2008 & 2008-2009 Bellad Bagewadi Krishi Seva The Income Tax Officer, Sahakari Sangh Bellad Ward-1, Bagewadi, Taluka Hukkeri, Dr. Ghogeri Building, Dist. Belagavi – 591 305 Vs. Belgaum Road, State Of Karnataka. Gokak – 591 307. Pan Aaaat0640C State Of Karnataka (Appellant) (Respondent) For Assessee : Shri Shivanand Halbhavi For Revenue : Shri N. Shrikanth Date Of Hearing : 10.07.2023 Date Of Pronouncement : 13.07.2023 Order

Section 80P(2)(a)(i) in the interest of justice.” 3. Both the learned representatives next invited our attention to the CIT(A)'s detailed discussion upholding the Assessing Officer’s action making sec.80P(2)(a)(i) deduction disallowance as under : “9. The Assessing Officer after verifying the details as enumerated in the case of M/s Totgar Co-operative Sale

THE KHANAPUR vs. S SANGH LTD,BELGAUMVS.PR. COMMISSIONER OF INCOME TAX, HUBBALI

Appeal is allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri G.D. Padmahshali

disallowing the claim of the appellant U/s. 80P(2)(d). Alternatively, since the said interest income is attributable to carrying on the business of the appellant society, the same qualifies for deduction U/s. 80P (2)(a)(i) of the Income Tax Act, 1961. (c) The ratio of Totgar Cooperative Sales Society Ltd Vs ITO cannot be applied to the appellant

ITO, WARD - 2(1), MANGALURU vs. M/S S. K & UDUPI DISTRICT CO-OPERATIVE FISH MARKETING FEDERATION LIMITED, MANGALURU

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshali(Through Virtual Hearing) आयकर अपऩल सं. / Ita No.38 To 43/Pan/2022 निर्धारण वषा / Assessment Year : 2012-13 To 2014-15 & 2016-17 To 2018-19

disallowing the entire claim for deduction of ₹2,79,89,807/- made u/s 80P of the Act by holding the appellant as association of person [‘AOP’ for short] in place of Co- operative society. ITAT-Pune Page 2 of 10 M/s S K & Udupi District Cooperative Fish Marketing Federation Ltd. ITA No’s.38 to 43/PAN/2022 3.4 Aggrieved assessee appealed before

ITO, WARD - 2(1), MANGALURU vs. M/S S. K & UDUPI DISTRICT CO-OPERATIVE FISH MARKETING FEDERATION LIMITED, MANGALURU

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshali(Through Virtual Hearing) आयकर अपऩल सं. / Ita No.38 To 43/Pan/2022 निर्धारण वषा / Assessment Year : 2012-13 To 2014-15 & 2016-17 To 2018-19

disallowing the entire claim for deduction of ₹2,79,89,807/- made u/s 80P of the Act by holding the appellant as association of person [‘AOP’ for short] in place of Co- operative society. ITAT-Pune Page 2 of 10 M/s S K & Udupi District Cooperative Fish Marketing Federation Ltd. ITA No’s.38 to 43/PAN/2022 3.4 Aggrieved assessee appealed before

ITO, WARD - 2(1), MANGALURU vs. M/S S. K & UDUPI DISTRICT CO-OPERATIVE FISH MARKETING FEDERATION LIMITED, MANGALURU

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshali(Through Virtual Hearing) आयकर अपऩल सं. / Ita No.38 To 43/Pan/2022 निर्धारण वषा / Assessment Year : 2012-13 To 2014-15 & 2016-17 To 2018-19

disallowing the entire claim for deduction of ₹2,79,89,807/- made u/s 80P of the Act by holding the appellant as association of person [‘AOP’ for short] in place of Co- operative society. ITAT-Pune Page 2 of 10 M/s S K & Udupi District Cooperative Fish Marketing Federation Ltd. ITA No’s.38 to 43/PAN/2022 3.4 Aggrieved assessee appealed before

ITO, WARD - 2(1), MANGALURU vs. M/S S. K & UDUPI DISTRICT CO-OPERATIVE FISH MARKETING FEDERATION LIMITED, MANGALURU

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshali(Through Virtual Hearing) आयकर अपऩल सं. / Ita No.38 To 43/Pan/2022 निर्धारण वषा / Assessment Year : 2012-13 To 2014-15 & 2016-17 To 2018-19

disallowing the entire claim for deduction of ₹2,79,89,807/- made u/s 80P of the Act by holding the appellant as association of person [‘AOP’ for short] in place of Co- operative society. ITAT-Pune Page 2 of 10 M/s S K & Udupi District Cooperative Fish Marketing Federation Ltd. ITA No’s.38 to 43/PAN/2022 3.4 Aggrieved assessee appealed before

ITO, WARD - 2(1), MANGALURU vs. M/S S. K & UDUPI DISTRICT CO-OPERATIVE FISH MARKETING FEDERATION LIMITED, MANGALURU

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshali(Through Virtual Hearing) आयकर अपऩल सं. / Ita No.38 To 43/Pan/2022 निर्धारण वषा / Assessment Year : 2012-13 To 2014-15 & 2016-17 To 2018-19

disallowing the entire claim for deduction of ₹2,79,89,807/- made u/s 80P of the Act by holding the appellant as association of person [‘AOP’ for short] in place of Co- operative society. ITAT-Pune Page 2 of 10 M/s S K & Udupi District Cooperative Fish Marketing Federation Ltd. ITA No’s.38 to 43/PAN/2022 3.4 Aggrieved assessee appealed before

ITO, WARD - 2(1), MANGALURU vs. M/S S. K & UDUPI DISTRICT CO-OPERATIVE FISH MARKETING FEDERATION LIMITED, MANGALURU

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshali(Through Virtual Hearing) आयकर अपऩल सं. / Ita No.38 To 43/Pan/2022 निर्धारण वषा / Assessment Year : 2012-13 To 2014-15 & 2016-17 To 2018-19

disallowing the entire claim for deduction of ₹2,79,89,807/- made u/s 80P of the Act by holding the appellant as association of person [‘AOP’ for short] in place of Co- operative society. ITAT-Pune Page 2 of 10 M/s S K & Udupi District Cooperative Fish Marketing Federation Ltd. ITA No’s.38 to 43/PAN/2022 3.4 Aggrieved assessee appealed before

THE CAMP MULTIPURPOSE PRIMARY AGRICULTURE COOPERATIVE SOCIETY LIMITED,PERNEM, GOA vs. INCOME TAX OFFICER, WARD 2 (1), PANAJI, GOA

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

Bench: SHRI PAVAN KUMAR GADALE (Judicial Member)

89,449/-.Further notice u/sec143 (2) and u/sec 142(1) of the Act are issued calling for the details supporting the return of income filed and details of cash deposits. The assesse has filed the information along with interest income on deposits with the cooperative banks and nationalized banks. The Assessing Officer (A.O) has dealt on the submissions/details of interest

THE CANACONA URBAN CO-OPERATIVE CREDIT SOCIETY LIMITED,CANACONA vs. INCOME TAX OFFICER, WARD - 5, MARGAO

Appeals are allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri G.D. Padmahshali

disallowing the claim of the appellant U/s. 80P(2)(d). Alternatively, since the said interest income is attributable to carrying on the business of the appellant society, the same qualifies for deduction U/s. 80P (2)(a)(i) of the Income Tax Act, 1961. (c) The ratio of Totgar Cooperative Sales Society Ltd Vs ITO cannot be applied to the appellant

THE CANACONA URBAN CO-OPERATIVE CREDIT SOCIETY LIMITED,CANACONA vs. INCOME TAX OFFICER, WARD - 5, MARGAO

Appeals are allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri G.D. Padmahshali

disallowing the claim of the appellant U/s. 80P(2)(d). Alternatively, since the said interest income is attributable to carrying on the business of the appellant society, the same qualifies for deduction U/s. 80P (2)(a)(i) of the Income Tax Act, 1961. (c) The ratio of Totgar Cooperative Sales Society Ltd Vs ITO cannot be applied to the appellant

SHRI BASAVESHWAR PRATHAMIK KRISHI PATTIN SAHAKARI SANGH EXAMBA,EXAMBA vs. INCOME TAX OFFICER WARD -1 NIPANI, NIPANI

The appeal of the assessee is ALLOWED

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliassessment Year : 2017-18 Shri Basaveshwar Prathamik Krishi Pattin Sahakari Sangh Niyamit Examba, Dist.: Belgaum Pan: Aacas1122N . . . . . . . Appellant

disallowance of 52% interest received on investment with BDCC bank and (2) addition of profit from PDS. Thus, the consequential assessment u/s 143(1) of the Act was framed determining income at ₹3,34,746/- owning to denial of deduction claimed u/s 80P(2)(d) of the Act. ITAT-Panaji Page 2 of 8 Shri Basaveshwar Prathamik Krishi Pattin Sahakari

SHRI KALMESHWAR CO-OP CREDIT SOCIETY,BELGAUM vs. ASSESSING OFFICER, NATIONAL E LIMITED ASSESSMENT CENTRE, DELHI

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 164/Pan/2025 Assessment Year : 2020-21 Shri Kalmeshwar Co-Op Credit Society Limited. 396/4 Main Road, Lbs Nagar, Kangralli, Belagavi-590010. Pan : Aaajs2317N . . . . . . . Appellant

disallowance matter travelled up in first appeal, wherein the Ld. NFAC dismissed the appeal by confirming the denial in line with the notings of the Ld. AO. While confirming the said denial the Ld. NFAC reiterated that, the payer of interest income to the assessee was a bank hence claim is not deductible as transaction with bank dampens the spirit

THE ATHANI CREDIT CO-OPERATIVE SOCIETY LIMITED,ATHANI vs. INCOME TAX OFFICER, WARD - 1, BELAGAVI

Appeal is partly allowed in above terms

Bench: Shri Satbeer Singh Godara & Dr. Dipak Ripote

89 (Delhi) not allowing deduction u/s.80P on interest income earned from banks. Both the Hon'ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (2010) 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi

THE HIND CO-OPERATIVE HOUSING SOCIETY LIMITED,BELGAVI vs. INCOME TAX OFFICER, WARD - 1(2), BELAGAVI

The appeal of the assessee is ALLOWED

Bench: Shri Satbeer Singh Godara & Shri G. D. Padmahshali(Through Virtual Hearing From Pune) आयकर अपऩल सं. / Ita No. 038/Pan/2023 निर्धारण वषा / Assessment Year : 2017-18 Hind Co-Operative Housing Society Ltd., 131, Hindwadi, Belgaum, Karnataka-590011 Pan: Aacat4514B . . . . . . . अपीलार्थी / Appellant बिधम / V/S Income Tax Officer, Ward-1(2), Belgaum . . . . . . . प्रत्यर्थी / Respondent द्वधरध / Appearances Assessee By : Mr Pramod Vaidya [‘Ld. Ar’] Revenue By : Mr N. Shrikanth [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 07/08/2023 घोषणा की तारीख / Date Of Pronouncement : 01/09/2023 आदेश / Order Per G. D. Padmahshali, Am; Against The Impugned Din & Order No. Itba/Nfac/S/250/2022- 23/1048023500(1) Dt. 15/12/2022 Passed U/S 250 Of Income-Tax Act, 1961 [‘The Act’ Hereafter] By National Faceless Appeal Centre, Delhi [‘Nfac’ Hereafter] The Present Appeal Is Instituted U/S 253(1) Of The Act For Assessment Year 2017-18 [‘Ay’ Hereinafter].

disallowing the deduction u/s 80P in-spite the issue has been adjudicated by the Tribunal in assessee’s own case for AY 2016-17 in ITA No. 239/PAN/2019 and further in case of ‘The Ugar Sugar Works & Dr Shirgaonkar Shaikshanki Trust Nokar Co-op. Credit Society Vs ITO’ MA No. 02/PAN/2021 r.w. ITA No. 84/PAN/2018. 3. At the virtual hearing

THE VIVIDHA URBAN CO-OPERATIVE CREDIT SOCIETY LIMITED,NAVELIM, SANQUELIM, BICHOLIM vs. ITO, WARD - 2(3), PANAJI

Appeal is allowed in above terms

Bench: Shri Satbeer Singh Godara

disallowance and find no merit in Revenue’s arguments. It is made clear that hon'ble apex court’s recent landmark decision in Mavilayi Service Co-operative Bank Ltd. vs. CIT [2021] 431 ITR 1 (SC) has settled the law in assessee’s favour and against the department so far as its status as a credit cooperative society as well