2015 (10) TMI 2583

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....r Merchants Souharda Credit Cooperative Ltd (ITA.307 of 2014, dt.28.10.2014) 02. Ld. DR submitted that assessee had invested its money with other banks and assessee could not show whether it was surplus or amount lent from its members which were so invested. As per the Ld. DR without getting clarification in this regard, CIT (A) had wrongly relied on the Hon'ble jurisdictional High Court judgment in Tumkur Merchants Souharda Credit Cooperative Ltd (supra). 03. Per contra, Ld. AR supported the order of CIT (A). 04. We have perused the orders and heard the rival contentions. In the case of Tumkur Merchants Souharda Credit Cooperative Ltd (supra), Hon'ble jurisdictional High Court held as under : "4. The learned counsel for t....

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....siness of providing credit facilities to its members, is the question. In this regard, it is necessary to notice the relevant provision of law ie., Section 80P(2)(a)(i): "Deduction in respect of income of co-operative societies: 80P (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in subsection (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely: (a) in the case of co-operative society engaged in - (i) )carrying on the business of ....

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....ibution of electricity. In this connection, it may be pointed out that whenever the legislature wanted to give a restricted meaning in the manner suggested by the learned Solicitor General, it has used the expression "derived from", as, for instance, in section 80J. In our view, since the expression of wider import, namely, "attributable to", has been used, the legislature intended to cover receipts from sources other than the actual conduct of the business of generation and distribution of electricity." 8. Therefore, the word "attributable to" is certainly wider in import than the expression "derived from". Whenever the legislature wanted to give a restricted meaning, they have used the expression "derived from". The expression "a....

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....ng 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 liability side. Therefore, to that extent, such interest income cannot be said to be attributable either to the activity mentioned in section 80P(2)(a)(i) of the Act or under Section 80P(2)(a)(iii) of the Act. Therefore in the facts of the said case, the Apex Court held the assessing officer was right in taxing the interest income indicated above under Section 56 of the Act. Further they made it clear that they are confinin....