TaxTMI 
TaxTMI 
2016 (3) TMI 14
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce Visakhapatnam dated 26.2.2013 for the assessment year 2009-10. The cross appeal was filed by the revenue for the assessment year 2007-08 against the order of CIT(A), Visakhapatnam. 2. Facts are in brief that the assessee is a Co-operative Building Society Limited, engaged in collecting deposits, lending loans to its members for purchase of sites, buildings and construction of houses. For the assessment year under consideration, i.e. assessment year 2007-08, assessee has filed a return of income declaring total income of Rs. 10,88,140/-. The A.O. has completed the assessment u/s 143(3) of the Income-Tax Act, 1961 (hereinafter called as 'the Act') on 30.12.2009 by determining the total income of the assessee at Rs. 60,98,516/-. On being....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssee being a cooperative bank and providing credit to its members would be entitled to deduction u/s 80P of the Act, even such claim was not made in the return of income or by way of filing the revised return before assessment. As the said scheme of deduction is in the nature of relief provided specially in the statute, the assessee would be entitled to such a deduction subject to satisfaction of the eligibility conditions prescribed in the statute and directed to the A.O. to grant deduction u/s 80P of the Act, subject to verification of eligibility conditions contained in section 80P of the Act. 4. In so far as taxability of interest on fixed deposit is concerned, it was submitted before the Ld. CIT(A) that the assessee collects the dep....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... purpose of business i.e. lending to members of the society, the assessee keeps money in the bank and earned the interest income and submitted that the interest income earned by the assessee is in connection with the business of the assessee, therefore, it is a business income and not an income from other sources. 7. On the other hand, the Ld. D.R. has submitted that the interest income earned by the assessee is income from other sources not the business income and strongly supported the order passed by the A.O. 8. The Ld. Counsel for the assessee has submitted that the issue involved in this appeal squarely covered by the jurisdictional High Court in the case of CIT Vs. Andhra Pradesh State Co-operative Bank Ltd. (2011) 336 ITR 516 (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ciety Ltd. Vs. ITO (supra) by following the decision of A.P. High Court in the case of CIT Vs. Andhra Pradesh State Co-operative Bank Ltd. (supra) has held that "interest earned on the deposits in the bank by the assessee cooperative society providing credit facility to its members would be quantified for deduction u/s 80P of the Act". We therefore respectfully following the jurisdictional High Court as well as the judgement of the Karnataka High Court, allow this ground of appeal raised by the assessee. 10. So far as cross objection filed by the revenue is concerned in ITA No.386/Vizag/2013, the Ld. CIT(A)o has observed that the assessee by mistake has not claimed deduction u/s 80P of the Act. The A.O. for the assessment year 2008-09 ha....