TaxTMI 
TaxTMI 
TaxTMI 
2015 (9) TMI 170
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....d as income from other sources. 2. The appeal is barred by limitation by 47 days. The assessee has filed an affidavit requesting the bench to condone the delay. It is stated in the affidavit that the auditor to whom the order of Ld CIT(A) was given to was very busy with tax audit works and hence he could not go through the same. Later the copy of order was given to the present counsel who advised to file the present appeal. Accordingly it was submitted that the delay occurred for bonafide reasons and accordingly it is prayed that the delay be condoned. I heard the parties on this preliminary issue. Having heard to the submissions made in the affidavit, I am of the view that there is reasonable cause for the delay in filing the present appe....
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....vely assigned to them in Part V of the Banking Regulation Act, 1949. The expression "primary co-operative agricultural and rural development bank" means a society having its area of operation confined to a taluk and the principal object of which is to provide for long term credit for agricultural and rural development activities. 4. The assessing officer, after referring to the provisions of Banking Regulation Act held that the assessee is a bank and hence it is hit by the provisions of sec. 80P(4) of the Act. Accordingly he rejected the claim for deduction u/s 80P of the Act. 5. In the appellate proceedings, the ld CIT(A) held that the assessee cannot be considered to be a co-operative bank. On this decision, the revenue has not come on ....
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.... the same is exempt u/s 80P(2)(a)(i) of the Act. In the alternative, it was submitted that the interest received from deposits kept with Co-operative societies is exempt u/s 80P(2)(d). The Ld CIT(A) was not convinced with the contentions of the assessee and accordingly held that the interest income received from deposits cited above is assessable as income under the head Income from other sources and accordingly held that the deduction u/s 80P(2)(a)(i) is not available to it. In this regard, he placed reliance on the decision rendered by Hon'ble Supreme Court in the case of Totgars Co-operative Sale Society Ltd (2010)(229 CTR (SC) 209) Aggrieved, the assessee has filed this appeal. 7. The Ld A.R submitted that the decision in the case of T....
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....10 in the case of CIT Vs. South Eastern Railway Employees Co-operative Credit Society. 8. The Ld D.R. on the contrary, placed strong reliance on the order passed by Ld CIT(A). 9. I heard the parties and perused the record. In my view, the decision rendered by Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd (supra) squarely applies to the facts of the present case. In the case before the Hon'ble Karnataka High Court also, the assessee claimed deduction u/s 80P(2)(a)(i) on the interest income earned from deposits kept with banks on the reasoning that the same shall form part of its business income. The Hon'ble High Court upheld the said view by duly considering the decision rendered by Hon'ble Su....
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....t. 9. In this context when we look at the judgment of the Apex Court in the case of M/s. Totgars Co-operative Sale Society Ltd., on which reliance is placed, the Supreme Court was dealing with a case where the assessee-Cooperative Society, apart from providing credit facilities to the members, was also in the business of marketing of agricultural produce grown by its members. The sale consideration received from marketing agricultural produce of its members was retained in many cases. The said retained amount which was payable to its members from whom produce was bought, was invested in a short-term deposit/security. Such an amount which was retained by the assessee - Society was a liability and it was shown in the balance sheet on the lia....