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1 - 7 of 7 (0.19 seconds)Section 142 in The Tamil Nadu Co-Operative Societies Act, 1983 [Entire Act]
Section 139 in The Tamil Nadu Co-Operative Societies Act, 1983 [Entire Act]
The Income Tax Act, 1961
The Mavilayi Service Cooperative Bank ... vs Commissioner Of Income Tax Calicut on 12 January, 2021
9. Coming back to the issue of interest income earned from fixed deposits and
claimed deduction u/s.80P(2)(d) of the Act. The AO has denied deduction claimed
u/s.80P(2)(d) of the Act in respect of interest income earned from a co-operative
bank on the ground that as per the said provisions, interest earned from any other
co-operative society is only eligible for deduction u/s.80P(2)(a)(i) of the Act. The
AO has taken support from the decision of the Hon'ble Supreme Court in the case
of M/s. Totagars Co-operative Sales Society Ltd., supra. We have gone through
the findings recorded by the AO in the light of the decision of the Hon'ble Supreme
Court in the said case and find that the fact of the case before the Hon'ble
Supreme Court is entirely different from the facts of the present case. In the case
before the Hon'ble Supreme Court, the assessee was a co-operative sales society
which is engaged in the business of trading in agricultural produce for its members
and during the course of its business it has parked surplus funds in other co-
operative banks / nationalized banks and earned interest. In those facts, the
Hon'ble Supreme Court came to the conclusion that the assessee is not entitled
for deduction towards interest income u/s.80P(2)(d) of the Act, because such
interest is not earned from its business activity. In this case, the assessee is
primarily engaged in the business of providing credit facilities to its members and
in the course of its business it has parked funds collected from its members in
other co-operative banks / nationalized banks as per the statutory requirements of
the co-operative societies Act. The assessee has treated interest earned from
other co-operative banks as part of its business activity. Once the assessee has
earned interest income as part of its business activity and such interest income is
earned out of the funds belonging to its members, then the assessee is entitled for
deduction u/s.80P(2)(d) of the Act in respect of such interest income. Therefore,
we are of the considered view that the case laws relied upon by the ld.AO in the
case of Totogars Co-operative Sales Society Ltd., is not applicable to the present
facts.
The Commissioner Of Income Tax vs M/S. Veerakeralam Primary ... on 5 July, 2016
We further noted that an identical issue was considered by the Hon'ble
Madras High Court in the case of CIT vs. Veerakeralam Primary Agricultural Co-
operative Credit Society (2016) 388 ITR 492 (Mad), where the Hon'ble High Court
after referring to the decision of the Hon'ble Supreme Court in the case of
Totagars Co-operative Sales Society Ltd., held that the benefit of deduction
u/s.80P of the Act is excluded for co-operative banks but credit co-operative
societies are entitled to claim deduction u/s.80P of the Act in respect of interest
income earned from deposits kept in other co-operative banks.
Section 148 in The Tamil Nadu Co-Operative Societies Act, 1983 [Entire Act]
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