2011 (7) TMI 80

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....r for respondent.   ORAL JUDGMENT (PER J.P. DEVADHAR, J.)   1. The question of law raised by the revenue in this appeal reads thus:-   " Whether on the facts and circumstances and in law the Tribunal was justified in directing the assessing officer to include the interest on the amount of advance rent receipt amounting to Rs. 18,88,541/- for the purpose of deduction u/s.80P....

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....was received in the course of banking business and hence eligible for deduction under Section 80P of the Act. ITAT has upheld the order of CIT(A). Hence, this appeal is filed by the revenue.   6. Counsel for the revenue submitted that in view of the decision of the Apex Court in the case of Totgar's Co-operative Sale Society Ltd. V/s. ITO reported in [2010] 322 ITR 283 (SC), the decision o....

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....as issued guidelines on 18/6/1987 thereby permitting the co-operative banks to give advance rent to the landlords (from whom premises are taken for carrying on the business) subject to charging interest and other conditions set out therein. Thus. the interest income on advance rent is earned in accordance with the norms laid down by RBI and hence it would be income earned during the course of carr....