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1 - 10 of 14 (0.22 seconds)State Bank Of India Officer'S ... vs Pr. Commissioner Of Income-Tax ,, on 7 July, 2017
"9. We heard the rival submissions and perused the material on
record. Admittedly, the appellant is a Cooperative society formed
under the provisions of Maharashtra Cooperative Societies Act,1960
4
ITA No.1245/PUN/2018
Anand Nagari Sah Patsanshta Maryadit
with the objective of accepting deposits and lending money to its
members. The money which is not immediately required for the
purpose of lending to the members is deposited with Bank of Baroda
in the form of Fixed Deposit. The question is whether the interest so
earned qualifies for exemption u/s. 80P(2)(a)(i) of the Act. The AO as
well as the CIT(A) were of the opinion that the interest earned from
third parties or non-members does not quality for exemption u/s.80P.
It is an admitted position that the interest so earned should be taxed
as „income from other sources‟ There is a cleavage of judicial
opinion among several High Courts on the issue of eligibility of this
kind of income for exemption u/s. 80P(2)(a)(i) of the Act. The
Hon‟ble Punjab & Haryana High Court in the case of CIT vs. Punjab
State Cooperative Federation of Housing Building Societies Ltd. 11
taxmann.com 448, the Hon‟ble Gujarat High Court in the case of
State Bank of India Vs. CIT 389 ITR 578 (Guj.
Kakasaheb Thorat Gramin Bigarsheti ... vs Income-Tax Officer, Ward - 14(5),, Pune on 2 November, 2018
We find the instant issue to
be any more res integra as learned co-ordinate bench‟s order in
ITA No.1700/PUN/2017 dated 27.12.2021 in Nashik Road Nagari
Sahkari Patsanstha Limited vs. ITO has declined Revenue‟s
identical arguments as follows:
Commissioner Of Income Tax-Ii vs M/S Punjab State Cooperative ... on 10 May, 2011
"9. We heard the rival submissions and perused the material on
record. Admittedly, the appellant is a Cooperative society formed
under the provisions of Maharashtra Cooperative Societies Act,1960
4
ITA No.1245/PUN/2018
Anand Nagari Sah Patsanshta Maryadit
with the objective of accepting deposits and lending money to its
members. The money which is not immediately required for the
purpose of lending to the members is deposited with Bank of Baroda
in the form of Fixed Deposit. The question is whether the interest so
earned qualifies for exemption u/s. 80P(2)(a)(i) of the Act. The AO as
well as the CIT(A) were of the opinion that the interest earned from
third parties or non-members does not quality for exemption u/s.80P.
It is an admitted position that the interest so earned should be taxed
as „income from other sources‟ There is a cleavage of judicial
opinion among several High Courts on the issue of eligibility of this
kind of income for exemption u/s. 80P(2)(a)(i) of the Act. The
Hon‟ble Punjab & Haryana High Court in the case of CIT vs. Punjab
State Cooperative Federation of Housing Building Societies Ltd. 11
taxmann.com 448, the Hon‟ble Gujarat High Court in the case of
State Bank of India Vs. CIT 389 ITR 578 (Guj.
Mantola Co-Operative Thrift And Credit ... vs Commissioner Of Income Tax 21 on 17 July, 2017
), the Hon‟ble Delhi
High Court in the case of Mantola Co-operative Thrift & Credit
Society Ltd. Vs. CIT 50 taxmann.com 278, the Hon‟ble Punjab &
Haryana High Court in the case of CIT Vs. Punjab State Cooperative
Agricultural Development Bank Ltd. 389 ITR 68 and the Hon‟ble
Kolkata High Court in the case of CIT Vs. Southern Eastern
Employees Cooperative Credit Society Ltd. 390 ITR 524 took a view
that the income arising on the surplus invested in short term deposits
and securities cannot be attributed to the activities of the society and,
therefore, not eligible for exemption u/s.80P(2)(a)(i) of the Act.
Commissioner Of Income Tax ... vs Kerala State Cooperative Agricultural ... on 18 December, 2019
), the Hon‟ble Delhi
High Court in the case of Mantola Co-operative Thrift & Credit
Society Ltd. Vs. CIT 50 taxmann.com 278, the Hon‟ble Punjab &
Haryana High Court in the case of CIT Vs. Punjab State Cooperative
Agricultural Development Bank Ltd. 389 ITR 68 and the Hon‟ble
Kolkata High Court in the case of CIT Vs. Southern Eastern
Employees Cooperative Credit Society Ltd. 390 ITR 524 took a view
that the income arising on the surplus invested in short term deposits
and securities cannot be attributed to the activities of the society and,
therefore, not eligible for exemption u/s.80P(2)(a)(i) of the Act.
Rampyari Devi Saraogi vs Commissioner Of Income-Tax, West ... on 1 May, 1967
05. It is trite law that in order that the Commissioner may
consider an order to be "erroneous" for the purposes of section 263,
the error of law may not be apparent on the face of the order. The
Commissioner may consider an order of the Assessing Officer to be
erroneous not only if it contains some apparent error of reasoning or
of law or of fact .on .the face of it but a'so because it is a. stereo-typed
order which simply accepts what the assessee has stated in his return
and fails to make enquiries which are called for in the circumstances
of the case[for illustrations on the point, see Rampyari Devi Saraogi
v. CIT, (1968) 67 ITR 849(SC) and Tara Devi Aggarwal v. CIT (1973)
88 ITR 323(SC)].
M/S Tumkur Merchants Souharda Credit ... vs Assessee on 19 February, 2014
Pat
Sanstha Maryadit Vs. ITO (ITA Nos.559/560/PUN/2018, dated 11-12-
2018) has taken view in favour of the assessee following the judgment
of Hon‟ble Karnataka High Court in the case of Tumkur Merchants
Souharda Credit Cooperative Ltd. (supra). Respectfully following the
decision of the Coordinate Bench, we hold that the interest income
earned on the investment of surplus money with banks is also eligible
for exemption u/s.80P(2)(a)(i) of the Act. Thus, the grounds of appeal
No. 1 & 2 stands allowed."
1.The Vavveru Co-Operative Rural Bank ... vs 1.The Chief Commissioner Of Income Tax, ... on 15 March, 2017
and the Hon‟ble Telangana and Hon‟ble Andhra
Pradesh High Court in the case of Vaveru Co-operative Rural Bank
Ltd. v CIT [(2017) 396 ITR took a view that such interest income is
attributable to the activities of the society and, therefore, eligible for
exemption u/s.80P(2)(a)(i) of the Act. The Coordinate Bench of Pune
Benches in the case of M/s. Ratnatray Gramin Bigar Sheti Sah.
Baliraja Gramin Bigarsheti Sahakari ... vs Income-Tax Officer, Ward - 1,, ... on 2 November, 2018
Pat
Sanstha Maryadit Vs. ITO (ITA Nos.559/560/PUN/2018, dated 11-12-
2018) has taken view in favour of the assessee following the judgment
of Hon‟ble Karnataka High Court in the case of Tumkur Merchants
Souharda Credit Cooperative Ltd. (supra). Respectfully following the
decision of the Coordinate Bench, we hold that the interest income
earned on the investment of surplus money with banks is also eligible
for exemption u/s.80P(2)(a)(i) of the Act. Thus, the grounds of appeal
No. 1 & 2 stands allowed."