2018 (12) TMI 1313

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....R For the Revenue : Shri B.P. Srivastava, Sr.DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: Assessee is in appeal before the Tribunal against order of ld.CIT(A)-4, Vadodara dated 30.9.2016 passed for the assessment year 2013-14. 2. The grounds raised in the appeal of the assessee are descriptive in nature, which in fact raises only one issue i.e. denial exemption under section 80P(2)(a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....its reply dated 25.2.2016 defended its claim and relied upon certain case laws. The ld.AO did not accept the submissions of the assessee, as he found that the cases relied upon by the assessee covers only cooperative bank which are doing banking business and not cooperative society engaged in providing credit facilities to its members. He accordingly denied the claim of the assessee and added to t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... case of State Bank of India Co-operative Society Vs. CIT, 72 taxmann.com 64 (Guj) wherein it has been held that cooperative society engaged in the business of providing credit facilities to its members which earns interest income on the surplus funds parked with the nationalised banks, is not eligible for deduction under section 80P(2)(a)(i) of the Act. Since impugned orders of Revenue authoritie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... High Court. Since orders of the Revenue authorities are in accordance with judgment of the Hon'ble jurisdictional High Court cited supra, no interfere is called for in the impugned orders, which we confirm. However, any expenditure incurred by the assessee for earning such income could be allowed to it, if not already allowed. In other words, the ld.AO has to determine the net interest income as ....