TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Confirms Tax Exemption for Credit Society's Interest Income u/s 80P(2)(a)(i) of Income Tax Act.</h1> The Appellate Tribunal upheld the CIT(A)'s decision, dismissing the revenue's appeal. It concluded that the interest income earned by the Credit ... Exemption u/s. 80P(2)(a)(i) - Addition on account of interest income - According to the assessee the interest earned by the co-operative society was attributable to the business activity of the appellant and a good portion of the said interest income was also from the investment with the other co-operative societies which is exempt u/s. 80P(2)(a)(i) of the Act - HELD THAT:- The issue is squarely covered by the judgment passed by the Hon’ble jurisdictional High Court in case of M/s. Guttigedarara Credit Co-operative Ltd [2015 (7) TMI 874 - KARNATAKA HIGH COURT] and the impugned addition has been rightly deleted by the CIT(A) applying the ratio laid down therein - the interest earned from such investment was attributable to the carrying out of the business of the appellant society. Appeal filed by revenue stands dismissed. Issues involved:The judgment involves the issue of whether interest income earned by a Credit Co-operative Society is attributable to its business activity and exempt u/s. 80P(2)(a)(i) of the Income Tax Act, 1961.Details of the Judgment:Issue 1: Addition of interest income by the Assessing Officer- The Assessing Officer (AO) added Rs. 2,13,74,847/- as interest income earned by the appellant Credit Co-operative Society.- The AO was of the opinion that the interest income was not earned out of the business carried on by the society, based on a previous decision and the judgment of the Hon'ble Apex Court in a specific case.- The appellant contended that the interest income was attributable to its business activity and a significant portion was exempt u/s. 80P(2)(a)(i) of the Act.- The AO's addition was ultimately deleted by the Commissioner of Income Tax (Appeals) [CIT(A)], relying on relevant judgments and orders.Issue 2: Appeal before the Appellate Tribunal- The appeal was filed by the revenue against the order of the National Faceless Appeal Centre (NFAC) related to the deletion of the addition of interest income.- The appellant argued that the issue was covered by a judgment of the jurisdictional High Court and the addition was rightly deleted by the CIT(A).- The Appellate Tribunal upheld the order of the CIT(A) based on the judgment of the High Court, finding the appeal by the revenue devoid of merit.Conclusion:The Appellate Tribunal upheld the order of the CIT(A) and dismissed the appeal filed by the revenue, stating that the interest income earned by the Credit Co-operative Society was attributable to its business activity and exempt under the relevant section of the Income Tax Act.This summary provides a detailed overview of the judgment, highlighting the key issues and the Tribunal's decision on each issue.
TaxTMI 
TaxTMI 
