TaxTMI 
TaxTMI 
2017 (3) TMI 1795
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....y 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 Income Tax Act, 1961. 3. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition by ignoring the ruling of Hon'ble Supreme Court in the case of Totgars Cooperative Sale Society Ltd. vs. ITO (2010) wherein while interpreting the provisions of section 80P of the Income tax Act, 1961, the Hon'ble Court has observed that the interest earned out of invested funds cannot fall within the meaning of the expression profit and gains of business and hence not eligible for deduction u/s 80P of the Income Tax Act." In ITA No. 1051/Ind/2016 grounds of appeal taken by the assessee read as under :- "1. The ld. CIT has erred in maintaining the disallowance of Rs. 47,339/- being depreciation on land and building. 2. Even if the addition is maintained, the exempte....
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....ore, deduction under section 80P(2)(a)(i) of the Act is not allowable. He further submitted that the learned CIT(A) has allowed the claim of the assessee on the basis of various orders of the Tribunal against which the Revenue has filed appeal u/s 260A of the Act before the Hon'ble High Court of Madhya Pradesh. He, therefore, submitted that since the matter is sub-judice before the Hon'ble High Court, the learned CIT(A) was not justified in allowing the claim of the assessee and as such his order deserves to be set aside. 1.4 On the other 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....
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....in the case of Totgars Cooperative Sale Society ltd (supra), he had nothing to say except to reiterate that what has been held by Hon'ble Supreme Court in the case of The Mahanagar Cooperative Bank ltd.(supra) applies equally in thecase of The Mahanagar Cooperative Bank ltd(supra). 4. We find that the issue is squarely covered in favour of the assessee by Hon'ble Bombay High court's judgment in the case of The Mahanagar Cooperative Bank ltd (supra) as also coordinate Bench of this Tribunal in assessee;'s own case (supra). As regards reliance placed by learned Departmental Representative in the case of Totgars Cooperative Sale Society ltd(supra), we have noted that Their Lordships of Hon'ble Bombay High Court have distinguished the said judgment by, inter alia,observing as follows: "In our opinion, there is no merit in the above contention because in the case of Totgars Cooperative Sale Society ltd(supra),the Apex Court in para 11 of its judgment has held that the decisions relating to the cooperative banks are distinguishable from the cases relating to the cooperative sale society. Moreover, the Apex court in the case of Nawanshahar Central cooperative bank (supra....
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....residential facilities through the house construction activities, through the institutions. To fulfil this aim, the assessee was to provide loan and advances to the institution 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 the case of Mehsana District Central Coop. Bank Limited vs. ITO, has held that there is nothing in phraseology of section 80-P(2)(a)(i), which makes it applicable only to income derived from working or circulating capital. Even interest income from IVPs has also held eligible f....