TaxTMI 
TaxTMI 
TaxTMI 
2017 (3) TMI 1795
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....dated 18.1.2016 passed u/s. 143(3) of the Income Tax Act, 1961(hereinafter referred to as "the Act) by the ACIT 1(1), Bhopal [hereinafter referred to as the AO]. 1. In ITA No. 1055/Ind/2016 grounds of appeal taken by the revenue read as under :- "1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs. 1,15,29,031/- rightly made by the A.O. to the income of the assessee as it is not eligible for deduction u/s 80P of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition by ignoring the fact that income not attributable to business activities of the society are notn eligible for deduction u/s 80P of the Inco....
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.... ITA No. 1051/Ind/2016 grounds of from housing property at Rs. 28,39,437/- and income from business or profession of Rs. 6,71,09,727/-. The assessee has claimed deduction of Rs. 6,57,59,166/- u/s 80P of the Act. However, the Assessing Officer made the addition on account of interest amounting to Rs. 1,11,93,299/- from IDBI Bank, Bank of Baroda, PNB Bank and interest of Rs. 3,35,732/- from savings bank account totaling to Rs. 1,15,29,031/- by holding that this interest is not covered by section 80P(2)(a)(i) of the Act. 1.2 Being aggrieved with the addition made by the Assessing Officer, the assessee preferred first appeal before the learned CIT(A). The learned CIT(A), after considering the submissions of the assessee in the wake of the fact....
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....r hand, the learned counsel for the assessee strongly supported the order of the learned CIT(A) on the ground that since the Tribunal has decided the issue in favour of the assessee, the learned CIT(A) was very much justified in deleting the addition. He, therefore, prayed that the order of the learned CIT(A) deserves to be maintained. 1.5 We have carefully considered the rival submissions of the parties in the wake of the facts of the case. So far as the decision of the Hon'ble Supreme Court in the case of Totgars Cooperative Sale Society Ltd.(supra) as relied upon by the revenue is concerned, we find that on similar facts, Income tax Appellate Tribunal 'B' Bench Mumbai, in ITA No. 3489/Mum/2010 in the case of ITO vs. Malad Sahkari Ba....
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....st income received by it from banks other than co-operative bank. The Assessing officer is not satisfied and is in appealbefore us. 3. While learned Departmental Representative fairly accepts that the issue is covered in favour of the assessee by order of the cooperative Bench of this Tribunal as also an unreported judgment of Hon'ble Bombay High Court in the case of ITO vs. The Mahanagar Cooperative Bank ltd., dated 28.7.2011 in ITA No.123 of 2010 , he places his reliance of Hon'ble Supreme Court's judgment in the case of The Totgars Cooperative Sale Society ltd, 229 CTR 209(SC). When it was pointed out to him that Hon'ble Bombay High Court in the case of The MahanagarCooperative Bank ltd., has duly considered the said judgment of Hon'bl....
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....e tax Act, 1961 would be allowable to the assessee. Thus, the decision of the Apex Court in the case of Togar's cooperative sale society Ltd (supra) would not be applicable to the facts of the present case." 5. In this view of the matter and respectfully following the esteemed views of Hon'ble Jurisdictional High Court in the case of The Mahanaghar Cooperative Bank ltd (supra) and also the decision of the coordinateBench in assessee's own case (supra), we uphold the conclusions arrived at by the CIT(A) and decline to interfere. 6. In the result, appeal is dismissed." 1.5.1 In the case of Totgar's cooperative sale society Ltd (supra), it had surplus funds which the assessee invested in short-term deposits with the Banks and in Gover....
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....ion and individuals against the immovable property and other securities in addition to the interest received from the Institutions and the individuals to whom the loan was advanced, the assessee was having income on the deposits with Bank, U.T.I. These deposits were made out of the surplus fund available with the assessee in the intervening period of making the advances and recovery of the loans. The I.T.A.T., Indore Bench has decided in the case cited supra that interest on IDBI Bonds and FDRs qualify for deduction u/s 80-P. Even in the case of CIT vs. Karnata Coop. Bank Limited (supra), the interest on Indira Vikas Patras, Kisan Vikas Patras, UTI and IDBI Bonds was found qualified for deduction u/s 80-P. The Hon'ble Supreme Court in t....