No section 80P deduction on Interest earned from investments made with Co-op Bank

Nikhara Souharda Credit Co- operative Limited Vs ITO (ITAT Bangalore)

The issue to be decided is with regard to the interest income earned on account of investments made with co-operative Banks, whether it is entitled to deduction either u/s 80P(2)(d) or u/s 80P(2)(a)(i) of the I.T.Act. The Bangalore Bench of the Tribunal in the case of M/s.Vasavamba Co­operative Society Ltd. (supra) had held that the assessee is not entitled to deduction either u/s 80P(2)(d) nor u/s 80P(2)(a)(i) of the I.T.Act with regard to the interest income earned from investments made with co-operative banks. The Bangalore Bench of the Tribunal in the case of M/s.Vasavamba Co-operative Society Ltd. (supra) had followed the judgment of the Hon’ble jurisdictional High Court in the case of Pr.Commissioner of Income-tax & Anr. v. Totagars Co-operative Sales Society 395 ITR 611 (Kar.).

Assessee is not entitled to deduction u/s 80P(2)(d) nor u/s 80P(2)(a)(i) of the I.T.Act in respect of interest income earned from investments with Co­operative Banks.

FULL TEXT OF THE ORDER OF ITAT BANGALORE

These appeals at the instance of the assessee are directed against two orders of the CIT(A), both dated 28.01.2010. The relevant assessment years are 2013-2014 and 2014-2015. Common issues are raised in these appeals, hence, they were heard together and are being disposed of by this consolidated order.

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