Tamilnadu Special Police Employees Cooperative Vs ITO (ITAT Chennai)
ITAT Chennai held that Kanchipuram Central Co-operative Bank Ltd., is a co-operative society registered under the Tamil Nadu Co-operative Societies Act, 1983 hence deduction u/s. 80P(2)(d) in respect of interest / dividend income received from Kanchipuram Central Co-operative Bank Ltd. admissible.
Facts- The assessee is a Thrift and Credit Society registered under the Tamil Nadu Co-operative Societies Act, 1983. The AO completed the assessment u/s.147 r.w.s. 144B of the Act vide order dated 02.03.2023. In the said reassessment order, the AO treated the income received from Kanchipuram Central Co-operative Bank Ltd., as ‘income from other sources’ thereby disallowing the claim of deduction made by the assessee society u/s.80P(2)(a)(i) / 80P(2)(d) of the Act.
First Appellate Authority confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Madras High Court in the case of Thorapadi Urban Co-op Credit Society Ltd., vs. ITO, Vellore held that interest/dividend income received from co-operative bank is deemed to have been received from co-operative society since it has been registered under the Tamil Nadu Co-operative Societies Act. Held that any Co-operative Society derived income by way of interest from investment made in any other co-operative bank which was registered under the Tamil Nadu Co-operative Societies Act, 1983, the whole of such interest is eligible for deduction.
