TaxTMI 
TaxTMI 
2019 (8) TMI 451
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....te to dispose of all these appeals by this common order. We take grounds of appeal raised by the assessee in all these three years in seriatim as under: ITA No.101/Ahd/2017: [Asstt.Year 2009-10] "1. The Learned Commissioner of Income Tax (Appeals)-1. Vadodara has erred in law and on facts of the case in not granting deduction u/s.80P(2)(a)(i) of the I.T. Act, 1961. 2. The Learned Commissioner of Income Tax (Appeals)- 4, Vadodara has erred in law and on facts of the case in treating interest receipt of Rs. 68,02,038/- as income from other sources and not allowing set off of earned forward loss u/s.72(1) of the I.T. Act, 1961 and carried forward depreciation. 3. The Learned Commissioner of Income Tax (Appeals)-4, Vadodara has erred in ....
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.... other sources. 3. The Learned Commissioner of Income Tax, (Appeals)-4, Vadodara has erred in law and on facts of the case in not allowing brought forward losses against the income. 4. The Learned Commissioner of Income Tax, (Appeals)-4, Vadodara has erred in law and on facts of the case in allowing deduction u/s.80P(2)(a)(i) of the I.T. Act, 1961." 3. In the Asstt.Year 2009-10, under ground no.1, the assessee has challenged reopening of the assessment. Brief facts of the case are that the assessee has filed its return of income on 12.9.2011 declaring negative income of Rs. 5,169/-. An assessment order was passed under section 143(3) on 12.9.2011 whereby the ld.AO has accepted the return declared by the assessee. Subsequently, it came ....
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....ives, we have gone through the record carefully. Before us, though the copy of reasons have not been placed on record, but with help of objections filed by the assessee vis-à-vis order of the AO vide which its objection against the reopening has been rejected. It was contended that assessment has been reopened merely on the basis of change of opinion. The ld.counsel for the assessee submitted that whether income of the assessee is to be assessed as business income or income from other sources, was the primary issue in the original assessment proceedings also. The AO has accepted that its income deserved to be assessed as business income. There was no new information with the AO, and therefore, assessment ought not to have been reopen....
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....e bank. The ld.counsel for the assessee contended that though initially the assessee was working as cooperative bank, but is licence to carry out banking business has been cancelled by the RBI. Thereafter, its status remained as cooperative credit society, which provides credits to its members. Hence, even if it ceased to carry on banking business, it is still entitled to exemption under section 80P(2)(a)(i) of the Act being a cooperative society. She pointed out that any surplus from its activities as a cooperative society, if deposited in the nationalized banks, then interest income require to be considered eligible for exemption under section 80P(2)(a)(i). In her alternative contentions, she submitted that in case it is not admissible o....
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.... members, which is deduction under section 80P(2)(a)(i), and the interest derived by depositing surplus with nationalized banks not being attributable to the business carrying on by the assessee, could not be deducted under section(2)(a) of the Act. In view of the decisions of Hon'ble jurisdictional High Court, we do not find any merit in this ground of appeal, but we accept alternative contention that only net interest income be excluded from the computation of 80P(2)(a)(i). Any expenditure incurred by the assessee in relation to earning of such interest income be set off against the interest income, and thereafter it is excluded from the computation. 10. In the Asstt.Year 2009-10, the assessee has shown gross interest income of Rs. 19,1....