Home › Income-Tax Act › Balasinor Vikas Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib) Shri Jalaram Mahila Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib) Anand Catholic Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib)

Balasinor Vikas Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib) Shri Jalaram Mahila Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib) Anand Catholic Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib)

S. 80P: Co-operative Society —Interest earned from scheduled bank — Not deductible — Net interest from deposits with scheduled bank to be excluded from deduction -Interest earned from Co-operative bank or society— Deduction allowable on net interest- Receipt by society from its members towards form fee — Attributable to and arising from Assessee’s day-to-day activities — Deductible-Standard deduction allowable . [ S.80P(2)(a), 80P(2)(c), 80P(2) (d) ]

On appeal, the Tribunal held that, the assessee was not entitled to deduction of interest from scheduled bank under Section 80P(2)(a)(i) of the Act and the Assessing Officer has to work out the net interest earned from the deposits with the scheduled bank to exclude that amount from the computation of deduction claimed under Section 80P(2)(a)(i) of the Act. The interest earned from co-operative bank or society would qualify for grant of deduction under Section 80P(2)(d) of the Act and the net amount of such interest income should be considered for grant of deduction under Section 80P(2)(d) of the Act.  State Bank of India v. CIT (2016) 389 ITR 578 (Guj) (HC) relied on. The assessee received amount from its members towards form fee, was attributable to and arose from the assessee’s day-to-day activities. Therefore, the claim of the assessee was allowable under Section 80P of the Act. The standard deduction of Rs. 50,000 claimed by the assessee under Section 80P(2)(c) of the Act being a statutory deduction, the assessee would be entitled to such deduction. The Assessing Officer was directed to allow such claim in accordance with the law. (AY.2014-15)