2018 (11) TMI 1420

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....D.R. ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This assessee's appeal for A.Y. 2013-14, arises from order of the CIT(A)- 3, Vadodara, dated 23-08-2016, in proceedings under section 143(3) of the Income Tax Act, 1961; in short "the Act". 2. The assessee has raised following grounds of appeal:- "1.00 On the facts and circumstances of your appellant's case as well as in law, the Id. CI....

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....GHKH-21-99-NSB-1099- 143-CM(36) dated 12.03.1999. Accordingly, it had passed Board's resolution dated 23.03.2009 before making such investments in fixed deposits with Bank of Baroda to comply with the directions given by the Gujarat Government. Your appellant further submits that the State Government had started issuing such notification keeping in view the bad conditions of various co-operati....

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....0P(2)(a)(i) in respect of aforesaid interest income derived from investment in fixed deposit with commercial banks. The assessing officer observed that exemption u/s. 80P(2)(a)(i) is available on income which is attributable to business operation of the assessee co-operative society and the interest earned on the fund invested with the commercial bank is not operational income from providing credi....

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..... 80P(2)(a)(i) of the act on interest income earned from fixed deposit maintained with the commercial bank. As per section 80P(2)(a)(i) of the act the interest income earned on providing credit facility to its members is deductible u/s. 80P(2)(a)(i) of the act. After perusal of the aforesaid provision of the act we observe that deduction u/s 80P(2)(a)(i) is not available on the interest earned on ....