2015 (10) TMI 1408

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....: Shri Sukesh Patil, CA For the Respondent : Shri P.K.Srihari, Addl.CIT ORDER Abraham P. George (Accountant Member).- In this appeal filed by the assessee its grievances is that the Assessing Officer denied deduction of Rs. 9,24,543 under section 80P(2)(a)(i) of the Income-tax Act, 1961, on the reasoning that such amount was interest from investments, which income fell under the head "....

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....court in the case of Totgar's Co-operative Sale Society Ltd. [2010] 322 ITR 283 (SC) had held that income attributable to the business of a co-operative society would be eligible under section 80P(2)(a)(i) only if it fell under any of the clause mentioned therein. Interest from deposit held with bank was nothing but "Income from other sources". According to him, the lower authorities were just....

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....tion 80P(2)(a)(i) of the Income-tax Act and the same reads as under : 'Section 80P. Deduction in respect of income of co-operative societies.-(2) The sums referred to in sub-section (1) shall be the following, namely, :- (a) in the case of a co-operative society engaged in- (i) carrying on the business of banking or providing credit facilities to its members, or.&#39....

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....xcess money with them which was not taken by its shareholders. Instead of keeping money idle with the assessee, they have deposited the same in a private limited company so that it can earn interest. In the instant case, the appellant-assessee deposited the same in a private limited company namely M/s. Renuka Sugars Ltd. 7. This court in identical circumstances, in CIT v. Grain Merchants ....