2016 (2) TMI 903

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....R D E R The assessee is in appeal before the Tribunal against the order of the ld.CIT(A)-1, Surat dated 22.6.2015 passed for the assessment year 2012-13. 2. The grounds of appeal of the assessee are as under: "1. That on facts and in law the ld.CIT(A) has grievously erred in upholding that interest income of Rs. 3,24,209/- is taxable as "income from other sources" instead of busines....

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....he material on record. The issue in the present case is with respect to granting of deduction under 80P on the interest earned on the deposits kept with bank. It is an undisputed fact that the assessee is a co-operative society. It is assessee's submission that the amounts that were not immediately required by the assessee were deposited in the bank so as to earn interest. The aforesaid submission....

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....is liable to be deducted in terms of Section 80P (1) of the Act. I fact similar view is taken by the Andhra Pradesh High Court in the case of CIT v/s. Andhra Pradesh State Co-operative Bank Ltd., [2011] 200 Taxman 220/12 taxmann.com 66. In that view of the matter, the order passed by the appellate authorities denying the benefit of deduction of the aforesaid amount is unsustainable in law. Accordi....

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....ench in the case of Marli Bazar Vibhag Vividh Karyakari Sahkari Mandi Ltd. Vs. ITO, in ITA Nos.3130/Ahd/2014 and 1834/Ahd/2013 order dated 8.12.2015 wherein on similar issue, the claim of the assessee was allowed deduction under section 80P Act. He further relied upon the judgment of the Hon'ble Karnataka High Court in the case of Guttigedarara Credit Co-op. Society Vs. ITO, 377 ITR 464 (Kar) in s....