Sindhu Bank Staff Co.op Credit Society Ltd., Sindhudurg V. Income-tax Officer,

ITA 30/PUN/2014

• Counselvise Citation: 3024514 RSA 2014
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V G GINDE; SUSHIL V MODAK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE BEFORE: SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO . 29 /PN/20 1 4 ASSESSMENT YEAR : 20 10 - 11 VEE JMANDALS WORKERS FEDERATION SAHAK ARI PATSANSTHA MARYADIT, HOUSE NO. 2674, PRATHAMESH COMPLEX, OPP. RAWOOL MAHARAJ JUNIOR COLLEGE, KUDAL, SINDHUDURG VS. THE INCOME TAX OFFICER, WARD 2(4), KUDAL (APPELLANT) (RESPONDENT) PAN NO. AAAAV1685R ITA NO. 30/PN/2014 ASSESSMENT YEAR : 20 10 - 11 SINDHU BANK STAFF CO - OPERATIVE CREDIT SOCIETY LIMITED, DALVI HOUSE, AT & POST - OROS, TAL. - KUDAL, DISTT. - SINDHUDURG VS. THE INCOME TAX OFFICER, WARD 2(4), KUDAL (APPELLANT) (RESPONDENT) PAN NO. AACAS0064M ITA NO. 31/PN/2014 ASSESSMENT YEAR : 2010 - 11 SINDHUDURG DISTRICT PRIMARY TEACHERS CO - OPERATIVE CREDIT SOCIETY LTD., SANKALPA SIDHHI, AT & POST - OROS, TAL. - KUDAL, DISTT. - SINDHUDURG VS. THE INCOME TAX OFFICER, WARD 2(4), KUDAL (APPELLANT) (RESPONDENT) PAN NO. AAATS7592R REVE NUE BY: SHRI RAJESH DAMOR ASSESSEE BY: SHRI V.G. GINDE & SUSHIL V MODAK DATE OF HEARING : 1 6 - 1 2 - 2014 DATE OF PRONOUNCEMENT : 24 - 1 2 - 2014 2 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG ORDER PER R.S . PADVEKAR , JM : - TH IS BATCH OF THREE APPEALS ARE FILED BY THREE DIFFERENT ASSESSEES CHALL ENGING THE RESPECTIVE IMPUGNED ORDERS OF THE LD. CIT(A), KOLHAPUR DATED 06 - 12 - 2013, 08 - 11 - 2013 AND 29 - 11 - 2013 FOR THE A.Y. 2010 - 11. THE FACTS AND ISSUES ARE IDENTICAL IN ALL THESE APPEALS HENCE, THESE APPEALS ARE DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE . 2. WE FIRST TAKE THE ASSESSEES APPEAL BEING ITA NO. 29/PN/2014. 2.1. THE ASSESSEE HAS TAKEN THE MULTIPLE GROUNDS. THE FIRST ISSUE IS IN RESPECT OF THE TAXABILITY OF THE INTEREST INCOME EARNED BY THE ASSESSEE CREDIT CO - OPERATIVE SOCIETY. THIS ISSUE ARISES FROM GROUND NOS. 1 TO 3. THE BRIEFLY STATED FACTS ARE AS UNDER. THE ASSESSEE SOCIETY IS A CO - OPERATIVE CREDIT SOCIETY REGISTERED UNDER MAHARASHTRA CO - OPERATIVE SOCIETIES ACT, 1960. THE MAIN OBJECT OF THE ASSESSEE SOCIETY IS TO PROVIDE CREDIT FACILITY TO ITS MEMBERS. THE ASSESSEE FILED THE RETURN OF INCOME FOR THE A.Y. 2010 - 11 WHICH WAS SELECTED FOR SCRUTINY. IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE HAS EARNED INTEREST INCOME ON THE SAVINGS BANK ACCOUNT AMOU NTING TO RS.13,10,407/ - . THE ASSESSING OFFICER DECLINED TO ALLOW BENEFIT OF DEDUCTION U/S . SEC. 80P(2)(A)(I) OF THE INCOME - TAX ACT TREATING THE SAID INTEREST INCOME AS A BORROWING PART OF ITS BUSINESS ACTIVITIES. THE ASSESSEE ALTERNATIVELY PLEADED FOR AL LOWING THE DEDUCTION TO THE ASSESSEE U/S. 80P(2)(D) OF THE INCOME - TAX ACT BUT THE SAID ALTERNATE PLEA WAS ALSO REJECTED. THE ASSESSING OFFICER RELIED ON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF TOTGARS CO - OPERATIVE SALE SOCIETY VS. ITO 32 2 ITR 283 (SC). THE ASSESSEE CHALLENGED THE ACTION OF THE ASSESSING OFFICER BEFORE THE LD. CIT(A) BUT WITHOUT SUCCESSES. NOW, THE ASSESSEE IS IN APPEAL BEFORE US. 3 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG 3. WE HAVE HEARD THE PARTIES. THE LD. COUNSEL SUBMITS THAT THE ASSESSEE HAS EARNED THE I NTEREST INCOME ON ITS BANK ACCOUNT WITH SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. WHICH IS A CO - OPERATIVE SOCIETY. HE PLEADS THAT AS PER THE PROVISIONS OF SEC. 80P(2)(D) OF THE ACT THE ASSESSEE IS OTHERWISE ALSO ELIGIBLE TO CLAIM THE DEDUCTION OF THE ENTIRE INTEREST INCOME IF THE SAME IS EARNED OR RECEIVED FROM ANOTHER CO - OPERATIVE SOCIETY. HE SUBMITS THAT SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. IS A CO - OPERATIVE SOCIETY AND MERELY BECAUSE IT IS ENGAGED IN THE BUSINESS OF BANKING THAT W OULD NOT CHANGE THE ELIGIBILITY FOR THE ASSESSEE TO CLAIM THE DEDUCTION U/S. 80P(2)(D) OF THE ACT. WE FIND FORCE IN THE ARGUMENT OF THE LD. COUNSEL . THE RELEVANT PART OF SEC. 80P(2)(D) OF THE ACT READS AS UNDER: 80P(1): WHERE, IN THE CASE OF AN ASSESSE E BEING A CO OPERATIVE SOCIETY, THE GROSS TOTAL INCOME INCLUDES ANY INCOME REFERRED TO IN SUB - SECTION (2), THERE SHALL BE DEDUCTED, IN ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF THIS SECTION, THE SUMS SPECIFIED IN SUB - SECTION (2), IN COMPUTING THE TO TAL INCOME OF THE ASSESSEE. 80P(2): THE SUMS REFERRED TO IN SUB - SECTION (1) SHALL BE THE FOLLOWING, NAMELY: (A) ........... (B) ........... (C) 2(D): IN RESPECT OF ANY INCOME BY WAY OF INTEREST OR DIVIDENDS DERIVED BY THE CO - OPERATIVE SOCIETY FROM ITS INVESTMENTS WITH ANY OTHER CO - OPERATIVE SOCIETY, THE WHOLE OF SUCH INCOME; 4. WE ALSO FIND THAT DEDUCTION U/S. 80P(2)(D) CLAIMED OF THE ASSESSEE IS WELL SUPPORTED BY THE DECISION OF THE ITAT, CHANDIGARH IN THE CASE OF PUNJAB STATE FEDERATION O F CO - OPERATIVE HOUSE BUILDING SOCIETIES LTD . VS. INCOME TAX OFFICER 2 ITD 617 (CHD.) . T HERE IS NO AMBIGUITY IN THE LANGUAGE OF SEC. 80P(2)(D). SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. IS A CO - OPERATIVE SOCIETY THOUGH ENGAGED IN THE BUSINESS OF 4 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG BANKI NG AND HENCE, THE ASSESSEE IS ENTITLED TO CLAIM THE DEDUCTION IN RESPECT OF THE INTEREST EARNED OR RECEIVED FROM THE SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. ON THE PLAIN READING OF THE LANGUAGE USED IN SEC. 80P(2)(D) IN OUR OPINION IT IS AN IND EPENDENT DEDUCTION OTHER THAN THAT OF SEC. 80P( 2 )(A)(I) . WE, THEREFORE, HOLD THAT THE INTEREST INCOME EARNED ON THE FIXED DEPOSIT OR ANY OTHER BANK ACCOUNT WITH SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. IS ALLOWABLE AS A DEDUCTION ON GROSS BASIS U/S. 80P(2)(D) OF THE ACT. ACCORDINGLY, THIS ISSUE IS DECIDE IN FAVOUR OF THE ASSESSEE. 5. THE NEXT ISSUE IS THE DIVIDEND INCOME OF RS.11,630/ - WHICH IS RECEIVED ON THE SHARES OF SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. SEC. 80P(2)(D) SPEAKS A BOUT THE INTEREST AS WELL AS THE DIVIDEND . F OR THE REASONS GIVING FOR ALLOWING THE INTEREST INCOME FROM SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. , WE ALSO ALLOW THE DIVIDEND INCOME AS A DEDUCTION U/S. 80P(2)(D) OF THE ACT AND THIS ISSUE IS ALSO D ECIDED IN FAVOUR OF THE ASSESSEE. WE FURTHER FIND THAT THIS ISSUE STANDS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE ITAT, A BENCH IN THE CASE OF SINDHUDURG ZILLA MADHYAMIK ADHYAPAK SAHAKARI PATPEDHI MARYADIT, SINDHUDURG VS. ITO, WAR D - 2(4), KUDAL ITA NO. 1825/PN/2013. THE OPERATIVE PART OF THE SAID DECISION IS AS UNDER: 7. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE US. THE IST DISPUTE IN THE GROUNDS OF APPEAL IS REGARDING THE ALLOWABILITY OF DEDUCTION U/S.80P(2)(D) IN RESPECT OF INTEREST INCOME OF RS.31,77,452/ - AND DIVIDEND INCOME OF RS.5,41,667/ - RECEIVED BY THE ASSESSEE COOPERATIVE SOCIETY ON INVESTMENT MADE IN DEPOSITS/SAVINGS ACCOUNTS AND SHARES OF SINDHUDURG CENTRAL COOPERATIVE BANK. ACCORDING TO THE ASSESSING OFFICER THE DEDUCTION IS ALLOWABLE U/S.80P(2)(D) IN CASE OF A COOPERATIVE SOCIETY FOR RECEIVING ANY INTEREST OR DIVIDEND INCOME FROM ANY OTHER COOPERATIVE SOCIETY. SINCE THE SAME HAS BEEN RECEIVED FROM A COOPERATIVE BANK WHICH IS 5 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG DISTINCT FROM A COOPERATIVE SOCIETY, THEREFORE, THE ASSESSEE IS NOT ENTITLED TO THE SAME FOR WHICH HE DISAL LOWED THE CLAIM OF DEDUCTION U/S.80P(2)(D). THE SAME HAS BEEN UPHELD BY THE CIT(A). 7.1 IT IS THE CASE OF THE LD. COUNSEL FOR THE ASSESSEE THAT EVEN THOUGH THE ASSESSEE HAS RECEIVED INTEREST ON DEPOSITS WITH SINDHUDURG CENTRAL COOPERATIVE BANK AND RECEIV ED DIVIDEND ON SHARES OF THE SAID COOPERATIVE BANK, HOWEVER, THE FACT REMAINS THAT SINDHUDURG CENTRAL COOPERATIVE BANK IS ALSO A COOPERATIVE SOCIETY. 7.2 WE FIND AN IDENTICAL ISSUE HAD COME UP BEFORE THE TRIBUNAL IN THE CASE OF M/S. JANATA GRAHAK MADHYAVA RTI SAHAKARI SANGH MARYADIT (SUPRA). WE FIND THE TRIBUNAL, FOLLOWING THE DECISION OF THE TRIBUNAL IN THE CASE OF BAJAJ AUTO LTD. EMPLOYEES CREDIT COOPERATIVE SOCIETY LTD. VIDE ITA NO.1047/PN/2012 DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE AND ALLOWED THE CLAIM OF DEDUCTION U/S.80P(2)(D) FOR INTEREST RECEIVED ON THE DEPOSITS WITH THE AURANGABAD DISTRICT CENTRAL COOPERATIVE BANK. THE RELEVANT OBSERVATION OF THE TRIBUNAL READS AS UNDER : 2. AT THE OUTSET OF HEARING, LEARNED AUTHORIZED REPRESENTATIVE POINTE D OUT THAT THIS ISSUE IS COVERED IN FAVOUR OF ASSESSEE BY THE DECISION OF ITAT, PUNE B BENCH IN ITA NO.L047/PN/2012 IN THE CASE OF ACIT VS. M/S. BAJAJ AUTO LTD. EMPLOYEES CO - OP. CREDIT SOCIETY LTD., WHEREIN THE TRIBUNAL HAS DECIDED THE ISSUE IN FAVOUR OF T HE ASSESSEE BY OBSERVING AS UNDER: '4. WE HAVE HEARD THE LD. DR. NONE WAS PRESENT FOR THE ASSESSEE. WE HAVE ALSO PERUSED THE ORDER OF THE AUTHORITIES BELOW. IN OUR OPINION SO FAR AS THE AMOUNT OF INTEREST RECEIVED ON THE DEPOSIT WITH AURANGABAD DISTRICT CE NTRAL CO - OPERATIVE BANK IS CONCERNED THE ASSESSING OFFICER HAS NOT PROPERLY APPRECIATED THE PROVISIONS OF LAW. SEC. 80P(2)(D) READS AS UNDER: 80P(1): WHERE, IN THE CASE OF AN ASSESSEE BEING A CO OPERATIVE SOCIETY, THE GROSS TOTAL INCOME INCLUDES ANY INCOME REFERRED TO IN SUB - SECTION (2), THERE SHALL BE DEDUCTED, IN ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF THIS SECTION, THE SUMS SPECIFIED IN SUB SECTION (2), IN COMPUTING THE TOTAL INCOME OF THE ASSESSEE. 6 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG 80P(2): THE SUMS REFERRED TO IN SUB - SECTION (1 ) SHALL BE THE FOLLOWING, NAMELY: (A) ........... (B) ........... (C) 2(D): IN RESPECT OF ANY INCOME BY WAY OF INTEREST OR DIVIDENDS DERIVED BY THE CO - OPERATIVE SOCIETY FROM ITS INVESTMENTS WITH ANY OTHER CO - OPERATIVE SOCIETY, THE WHOLE OF SUCH INCOME; 5. SUB - SEC. (4) OF SEC. SOP HAS WITHDRAWN THE DEDUCTION TO THE CO OPERATIVE BANK OTHER THAN PRIMARY AGRICULTURAL CREDIT SOCIETY OR A PRIMARY CO - OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK W.E.F. THE A.Y. 2007 - 08. THE SAID PROVISION IS APPLIC ABLE TO THE AURANGABAD DISTRICT CENTRAL CO - OPERATIVE BANK (ADCCB) IN WHICH THE ASSESSEE SOCIETY HAS KEPT DEPOSIT. THE WITHDRAWAL OF DEDUCTION BY INSERTION OF SUB - SECTION (4) OF SEC. SOP DOES NOT CHANGE 'STATUS' OF AURANGABAD DISTRICT CENTRAL CO - OPERATIVE B ANK 'AS A CO - OPERATIVE SOCIETY WHICH IS CONTEMPLATED IN SEC. 80P(1) OF THE ACT. WE, THEREFORE, HOLD THAT THE INTEREST RECEIVED ON THE DEPOSIT WITH THE AURANGABAD DISTRICT CENTRAL CO - OPERATIVE BANK BY THE ASSESSEE ON THE DEPOSITS ARE SQUARELY COVERED U/S. 8 0P( 2 )(D) AND THE INTEREST RECEIVED ON DEPOSIT KEPT WITH THE AURANGABAD DISTRICT CENTRAL CO OPERATIVE BANK IS AN ALLOWABLE DEDUCTION. SO FAR AS THE FINDING OF THE LD. CIT(A) THAT THE PROVISIONS OF SEC. 80P(2)(A)(I), IN OUR OPINION THE DECISION OF THE HON'BL E SUPREME COURT IN THE CASE OF TOTAGARS COOPERATIVE VS. ITO (SUPRA) IS AGAINST THE ASSESSEE AS INTEREST RECEIVED ON DEPOSITS WITH AURANGABAD DISTRICT CENTRAL CO - OPERATIVE BANK CANNOT BE SAID TO BE THE INCOME DERIVED FROM PROVIDING CREDIT FACILITIES TO ITS MEMBERS. WE, ACCORDINGLY, ANSWER THE GROUND TAKEN BY THE REVENUE. BUT, FINALLY WE HAVE CONFIRMED ORDER OF LD. CIT(A) GIVING RELIEF TO THE ASSESSEE U/S. 80P(2)(D).' 2.1 FACTS BEING SIMILAR, SO FOLLOWING THE SAME REASONING, THE ASSESSEE IS ENTITLED TO DEDUCT ION U/S.80P(2)(D). IN VIEW OF ABOVE, ASSESSEE IS ELIGIBLE FOR CLAIMING DEDUCTION U/S.80P(2)(D) OF I.T ACT, WHICH IS AVAILABLE FOR INCOME EARNED FROM BUSINESS AND NOT FROM OTHER SOURCES AS RIGHTLY HELD BY CIT(A). WE UPHOLD THE SAME. 7 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG 3. IN THE RESULT, A PPEAL FILED BY REVENUE IS DISMISSED. 7.3 RESPECTFULLY FOLLOWING THE ABOVE DECISION, WE HOLD THAT THE INTEREST INCOME OF RS.31,77,452/ - AND DIVIDEND INCOME OF RS.5,41,667/ - RECEIVED BY THE ASSESSEE COOPERATIVE SOCIETY IS ELIGIBLE FOR DEDUCTION/S.80P(2)(D) OF THE I.T. ACT. GROUND OF APPEAL ON THIS ISSUE BY THE ASSESSEE ARE ACCORDINGLY ALLOWED. 8. SINCE THE ASSESSEE SUCCEEDS ON THE ISSUE OF ALLOWABILITY OF DEDUCTION U/S.80P(2)(D) OF THE I.T. ACT, THEREFORE, THE ALTERNATE GROUNDS RELATING TO ALLOWABILITY OF THE INTEREST & DIVIDEND INCOME U/S.80P(2)(A)(I) OF THE I.T. ACT BECOMES ACADEMIC IN NATURE AND THEREFORE THE SAME ARE NOT BEING ADJUDICATED. 6. NOW, WE TAKE UP THE ASSESSEES APPEAL BEING ITA NO. 30/PN/2014. 6.1. IN THIS CASE ALSO THE ASSESSEE HAS TAKE N THE MULTIPLE GROUNDS. THE FIRST ISSUE FOR OUR CONSIDERATION IS DENYING THE DEDUCTION TO THE ASSESSEE IN RESPECT OF THE INCOME EARNED ON THE FIXED DEPOSIT S AND SAVING BANK ACCOUNT FROM SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. (SDCCL) OF RS.7,55 ,687/ - . THE ASSESSEE SOCIETY IS A CO - OPERATIVE CREDIT SOCIETY REGISTERED UNDER MAHARASHTRA CO - OPERATIVE SOCIETIES ACT, 1960. THE MAIN OBJECT OF THE ASSESSEE SOCIETY IS TO PROVIDE CREDIT FACILITY TO ITS MEMBERS. IT HAS EARNED INTEREST INCOME TO THE EXTEN T OF RS.7,55,687/ - AND SAID INTEREST IS EARNED ON THE DEPOSIT S AND THE SAVING BANK ACCOUNT WITH SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. (SDCCL). IT IS A CONTENTION OF THE ASSESSEE THAT THE SAID INTEREST INCOME IS ALLOWABLE AS A DEDUCTION U/S. 8 0P(2)(D) OF THE INCOME - TAX ACT . BOTH THE AUTHORITIES BELOW DECLINED TO CONSIDER THE CLAIM OF THE ASSESSEE. NOW, THE ASSESSEE IS IN APPEAL BEFORE US. 7. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE IDENTICAL ISSUE HAS BEEN DECIDED HERE - IN - ABOVE IN THE CASE OF VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT, SINDHUDURG BEING ITA NO. 29/PN/2014 . F OLLOWING THE REASONS IN THE SAID CASE FOR ALLOWING 8 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG THE CLAIM OF THE ASSESSEE , IN THIS CASE ALSO WE HOLD THAT THE INTEREST INCOME OF RS.7,5 5 ,687/ - ( RS.7,54,826/ - + RS.803/ - ) IS TO BE ALLOWED AS A DEDUCTION U/S. 80P(2)(D) OF THE INCOME - TAX ACT. ACCORDINGLY, THE RELEVANT GROUNDS TAKEN BY THE ASSESSEE ARE ALLOWED. 8. THE NEXT ISSUE IS DIVIDEND INCOME OF RS.1,12,503/ - EARNED ON THE SHARES OF S INDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. THE IDENTICAL ISSUE HAS BEEN DECIDED IN THIS BATCH OF APPEALS IN THE CASE OF VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT, SINDHUDURG BEING ITA NO. 29/PN/2014 . WE, THEREFORE, FOLLOWING THE REASONS , WE ALLOW THE RESPECTIVE GROUNDS AND DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. IN THE RESULT, THE ASSESSEE S APPEAL IS ALLOWED. 9. NOW, WE TAKE UP THE ASSESSEES APPEAL BEING ITA NO. 3 1 /PN/2014. 9.1. IN THIS CASE ALSO THE ASSESSEE HAS TAKEN T HE MULTIPLE GROUNDS. THE ASSESSEE SOCIETY IS A CO - OPERATIVE CREDIT SOCIETY REGISTERED UNDER MAHARASHTRA CO - OPERATIVE SOCIETIES ACT, 1960. THE MAIN OBJECT OF THE ASSESSEE SOCIETY IS TO PROVIDE CREDIT FACILITY TO ITS MEMBERS. IT HAS EARNED INTEREST ON THE LOANS ADVANCED TO ITS MEMBERS OUT OF ITS WORKING/CIRCULATING CAPITAL. THE ASSESSING OFFICER DECLINED TO ALLOW THE DEDUCTION U/S. 80P(2)(A)(I) AS WELL AS U/S. 80P(2)(D) OF THE INCOME - TAX ACT TO INTEREST INCOME OF RS.26,23,633/ - AND DIVIDEND INCOME OF RS. 3 ,37,500/ - . THE LD. CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. NOW, THE ASSESSEE IS IN APPEAL BEFORE US. 10. IN THIS CASE THERE IS ALSO NO DISPUTE THAT THE ASSESSEE HAS KEPT MONEY IN FIXED DEPOSIT S AS WELL AS HAVING THE SAVING BANK ACCOUNT WITH THE SINDHUDURG DISTRICT CENTRAL CO - OPERATIVE BANK LTD. WHICH IS A CO - OPERATIVE SOCIETY. IN RESPECT OF BOTH THESE ITEMS , IT IS CONTENTION OF THE ASSESSEE THAT THE ABOVE INCOMES ARE ALLOWED AS A DEDUCTION U/S. 80P(2)(D) OF THE ACT. WE HAVE ALREADY ADJUDIC ATE D THE IDENTICAL ISSUES IN 9 ITA NO S . 29, 30 & 31/PN/2014, VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT & ORS., SINDHUDU RG THE CASE OF VEEJMANDALS WORKERS FEDERATION SAHAKARI PATSANSTHA MARYADIT, SINDHUDURG BEING ITA NO. 29/PN/2014 . WE, THEREFORE, FOLLOWING OUR REASONS IN THE SAID CASE FOR ALLOWING DEDUCTION U/S. 80P(2)(D) OF THE ACT DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE AND RELEVANT GROUNDS TAKEN BY THE ASSESSEE ARE ALLOWED. 11. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 24 - 1 2 - 201 4 SD/ - SD/ - ( G.S. PANNU ) ( R.S. PADVEKAR ) ACCOUNTANT MEMB ER JUDICIAL MEMBER PUNE, DATED : 24 TH DECEMBER, 201 4 RK/PS COPY TO 1 ASSESSEE 2 DEPARTMENT 3 THE CIT(A) , KOLHAPUR 4 THE CIT - I I , KOLHAPUR 5 6 THE DR, ITAT, A BENCH, PUNE. GUARD FILE. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR , INCOME TAX APPELLATE TRIBUNAL , PUNE