TaxTMI 
TaxTMI 
2011 (1) TMI 1404
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....case and in Law, the Ld. CIT(A)-IV, Surat ought to have upheld the order of the Assessing Officer. 2.1. The assessee is a Co-operative Credit Society engaged in the banking activity. As per the return, a deduction u/s.80P of the I.T.Act of Rs. 5,85,94,515/- was claimed. The bifurcation of the same was as follows:- "interest received from the co-op.bank 3,71,91,552/- Dividend received from the co-op.bank 90,375/- Interest on loan and advances to members u/s.80P(2)(a)(i) 2,12,62,588/- Basic deduction u/s.80P(2)(c) 50,000/- 5,85,94,515/-" 2.2. On the basis of above calculation, the Assessing Officer has raised an objection that why the deduction u/s.80P of the I.T.Act was claimed on gross amount. The Assessing Officer has also discussed the provisions of section 80B(5) of the I.T.Act so as to inform the definition of "gross total income" to the assessee. Thereafter, he has mentioned that the "gross total income" before allowing the claim of deduction u/s.80P, was only at Rs. 1,11,99,966/- which could be taken into account for the computation of net income of the assessee. An another calculation has thereafter been made by ....
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....4,91,47,302/- Eligible profit for deduction u/s.80P 93,97,213/- Calculation of deduction u/s.80P 100% of eligible income 93,97,213/-" 2. 3. The result of the above two calculation was that as against the claim of deduction u/s.80P of Rs. 1,11,99,966/-, the Assessing Officer has allowed the deduction only of Rs. 93,97,213/-, therefore, the balance of Rs. 17,46,753/- was assessed in the hands of the assessee as per the following calculation:- "Gross total income before allowing deduction under chapter VI As per return of income Rs.1,11,99,966/- Less i) Deduction u/s.80 G 50% of (11,000 + 1,01,000) Rs. 56,000/- ii) Deduction u/s.80P as discussed above Rs.93,97,213/- Rs.94,53,213/- Total income Rs.17,46,753/-" Being aggrieved matter was carried before the first appellate authority. 3. The Learned CIT(Appeals) has not addressed the entire issue in its totality and confined himself to the issue in respect of claim of deduction pertaining to income-tax re-fund and the income under the head "Other Income" of Rs. 5,32,624/-. The tota....
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....Interest of Refund Rs. 6,30,820/- (ii) "Other Income" Rs. 5,32,624/- Total .... Rs.11,63,444/- These two additions have been contested by the assessee which shall be dealt with in the following paragraph. 5. As far as the question of reducing the addition from Rs. 94,53,213/- to Rs. 11,63,444/-, it is apparent from the above calculation that the Assessing Officer has never made an addition of Rs. 94,53,213/- but he has assessed the income at Rs. 17,46,753/-. By this calculation itself, the ground is misplaced and deserves to be dismissed. As far as the question of assessee's claim of 80P of the I.T.Act on the "gross total income" is concerned, the same shall also be dealt with in the following paragraph while deciding the assessee's appeal, therefore, in effect, that result shall automatically cover the total income as assessed by the Assessing Officer. In the result, we dismiss the ground of the Revenue. (B) Assessee's Appeal; i.e. ITA No.3129/Ahd/2008 6. Ground No.1 reads as under: (1) That the learned Commissioner of Income-tax (Appeals) has grievously erred in law and on facts in holding that the deduction u/s.80P(2)(a) of....
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....x refund whether allowable u/s.80P of the I.T.Act or not. An argument was that tax at source was deducted which had a direct nexus with the banking business of the assessee. In support, the Learned Authorised Representative of the Assessee Mr.M.K.Patel has placed reliance on the decision of ITAT Ahmedabad Special Bench in the case of Surat District Co-operative Bank Ltd. & Ors vs. ITO & Ors. reported as [2003]85 ITD 01 (Ahd)[SB]. 8. We have examined the facts of that precedent wherein it was held that interest on investments made by a Co-operative Bank in Government securities attributable to utilization of its funds from statutory reserves of Gujarat Co-operative Societies, and the interest income from investment made by way of mandatory minimum banking reserves as required by the relevant provisions of the Banking Regulation Act and income from hiring of sale Safe Deposit Vaults, are eligible for grant of deduction u/s.80P of the I.T.Act. At present we are not dealing any such source of income, hence this citation is not useful to the assessee. 8.1. Next was the question in respect of interest income on investments in Government Securities, FDs, KVP, IVP, UTI, etc. out of s....