2019 (5) TMI 1188

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....espondent : Sri. Anil D.Nair ORDER PER GEORGE GEORGE K, JM This appeal at the instance of the Revenue is directed against the CIT(A)'s order dated 10.12.2018. The relevant assessment year is 2014-2015. 2. The solitary issue raised is whether the interest income earned by the assessee from banks and sub-treasuries is eligible for deduction u/s 80P(2)(a(i) of the I.T.Act? 3. Brief fac....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed the issue in favour of the assessee by holding that the interest income received by the assessee should be assessed as `income from business' and not `income from other sources'. The CIT(A) relied on the co-ordinate Bench order of the Tribunal in the case of Kizhathadiyoor Service Cooperative Bank Limited in ITA No.525/Coch/2014 (Order dated 20.07.2016). 5. Revenue being aggrieved by the ord....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....deposits made with banks cannot be attributable as profit and gains from out of providing credit facilities to its members u/s 80P(2)(a)(i)? (iii) that the assessee has invested surplus funds like an ordinary investor and it has to be taxed as income from other sources? (iv) the decision of the Apex Court in the case of M/s Totgars Co-operative Sales Society in 322 ITR 283. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e co-ordinate Bench order of the Tribunal in the case of Kizhathadiyoor Service Co-operative Bank Limited (supra) had held that such interest income received should be assessed as `income from business' instead of `income from other sources'. In view of the coordinate Bench order of the Tribunal, we hold that the CIT(A) is justified in holding that interest income received should be assessed as `i....