TaxTMI 
TaxTMI 
2019 (1) TMI 282
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....ay is not inordinate and the reasons for the delay in filing the appeal is accepted as reasonable and genuine. The delay in filing the appeal is accordingly condoned. 3. One common issue involved in both these appeals are with regard to the claim for deduction u/s.80P(2)(a)(i) of the Income Tax Act, 1961 (Act) which was denied by the Revenue authorities. The assessee which is a co-operative society claimed deduction u/s 80P(2)(d) or 80P(2)(a)(i) of the Act on a sum of Rs. 21,58,239/- in asst. year 2013-14 and Rs. 8,02,633/- in asst. year 2014-15. The sum on which deduction was claimed was interest income earned on deposits by the Assessee with other banks. The deduction claimed by the assessee was not allowed by the Revenue authorities for....
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....e in respect of temporary parking of own surplus funds not immediately required is eligible for deduction u/s.80P(2)(a)(i) of the Act. The learned DR relied on a subsequent decision of the Hon'ble Karnataka High Court in the case of PCIT Vs. Totgars Co-operative Sale Society Ltd. 395 ITR 611 (Karn.). 6. We have carefully gone through the judgment relied by the learned DR. The facts of the case before the Hon'ble Karnataka High Court in the decision cited by the learned DR was that the Hon'ble Court was considering a case relating to Assessment Years 2007-2008 to 2011- 2012. In case decided by the Hon'ble Supreme Court in the case of the very same Assessee, the Assessment years involved was AY 1991-92 to 1999- 2000. The nature of interest ....
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....ed by the Hon'ble Supreme Court. Therefore, whether the source of funds were Assessee's own funds or out of liability was not subject matter of the decision of the Hon'ble Karnataka High Court in the decision cited by the learned DR. To this extent the decision of the Hon'ble Karnataka High Court in the case of Tumukur Merchants Souharda Co-operative Ltd. (supra) still holds good. Hence, on this aspect, the issue should be restored back to the AO for a fresh decision after examining the facts in the light of these judgment of the Hon'ble Apex Court rendered in the case of The Totgars Co-operative Sale Society Ltd. (supra) and of Hon'ble Karnataka high Court rendered in the case of Tumukur Merchants Souharda Co-operative Ltd. (supra). 7. T....