2018 (12) TMI 1662

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.... were justified in allowing the benefit of deduction u/s/80P(2)((a)(i) of the Income Tax Act, 1961 (Act) to the Assessee on interest income earned on investment in Bagalkot District Central Co-operative Bank and interest earned on savings bank account, FD with Jamkhandi Sugars Ltd. is eligible for deduction u/s.80-P(2)(a)(i)/80P(2)(d) of the Income Tax Act, 1961 (Act). The Assessing Officer denied the claim of the Assessee on the ground that interest income earned by making investment of surplus funds has to be assessed under the head "Income from other Sources" and not income from business and since interest income is not assessed as business income, the claim for deduction cannot be allowed. In coming to the above conclusion, the AO relie....

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.... 4. The assessee craves leave to add I alter any of the grounds of appeal before or at the time of hearing." 4. The learned AR relied on the decision of the Hon'ble Karnataka High Court in the case of Tumukur Merchants Souharda Credit Cooperative Ltd. 230 taxman 309 (Karn), the 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.). We have carefully gone through the said judgment. The facts of the case before the Hon'ble Karnataka High Court 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 Assessmen....