80P(2)(d) deduction for society

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Krishna (Querist)
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05 March 2022 If society makes deposits in co operative bank then interest income is claimed as deduction us 80P(2)(d); but as per section 80P(2)(d) if deposit made in co operative society then only deduction available.
Whether co opearative bank is considered as society for section 80P ???

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 March 2022 Yes...
the Hon’ble High Court in the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and
Hon’ble High Court of Gujarat in the case of State Bank Of India Vs. CIT (2016) 389 ITR 578 (Guj),
had observed,
that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 March 2022 Also refer:::
A co-operative society was entitled for claim of deduction under Sec. 80P(2)(d) on the interest income derived from its investments held with a co-operative bank is covered in favour of the assessee in the following cases: (i) M/s Solitaire CHS Ltd. vs. Pr. CIT, ITA No. 3155/Mum/2019; dated 29.11.2019 ( ITAT “G” Bench, Mumbai);
(ii) Majalgaon Sahakari SAkhar Karkhana Ltd. Vs. ACIT, Circle-3, Aurangabad, ITA No, 308/Pun/2018 (ITAT Pune)
(iiii). Kaliandas Udyog Bhavan Pemises Co-op. Society Ltd. Vs. ITO, 21(2)(1), Mumbai

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Krishna

Krishna (Querist)
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06 March 2022 Thank you sir .......

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 March 2022 Most Welcome ..

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)
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28 September 2022 Conflicting views are there which are diametrically opposite each other. The Hon'ble High Court of Bombay in the case of K.Subramanian and Anr. Vs. Siemens India Ltd. and Anr (1985) 156 ITR 11 (Bom) has held that where there is a conflict between the decisions of non-jurisdictional High Courts, then a view which is in favour of the assessee is to be preferred as against that taken against him. [ Please see the correct discussion on the issue of 80P(2)(d)
in Rena Sahakari Sakhar Karkhana Ltd., vs.Pr. Commissioner of Income-tax 2,
Aurangabad - ITAT Pune [ITA No.1249//PUN/2018 dated 07/01/2022].
Good luck