TaxTMI 
TaxTMI 
2020 (6) TMI 97
X X X X Extracts X X X X
X X X X Extracts X X X X
....g Officer as well as the Appellate authority failed to consider that the petitioner in appeal is a co-operative society engaged exclusively in providing credit facilities to its members and as such invests its surplus funds as are not immediately required for use in its business in co-operative societies as well as nationalized 1' commercial banks. Therefore, the entire interest income of Rs. 1,36,430/- derived by the appellant forms part of its profits and gains attributable to its business and chargeable u/s. 28 of the Act and qualifies for full deduction u,/s. 80P(2)(a)(i) of the Act. 2. It is submitted that the citation of Totgars Co-operative Sale Society Ltd. relied upon by the Respondent as well as CIT (A) is not applicable to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on under Section 80P of the Act. Therefore interest earned by the co-operative society from its scheduled banks does not qualify for deduction. The learned Authorised Representative relied on the decision of jurisdictional High Court in the case of Tumkur Merchants Souharda Credit Co-op Ltd. Vs. ITO in ITA No.307/Bang/2014 Dt.28.10.2014. Whereas the Assessing Officer has relied on the decision of The Totgars Co-operative Sale Society Ltd. Vs. ITO 322 ITR 283 and has not allowed the deduction of interest from scheduled banks under the provisions of Section 80P(2)(d) of Rs. 1,36,433 and assessed the total income of Rs. 1,36,430 and passed order under Section 143(3) of the Act dt.18.11.2016. Aggrieved by the A.O's order, the assessee has filed....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 2007-08 to 2011-12. In case decided by the Hon'ble Supreme Court in the case of the very same assessee, the Assessment Years involved was Assessment Years 1991-92 to 1999-2000. The nature of interest income for all the Assessment Years was identical. The bone of contention of the Assessee in AY 2007-08 to 2011-12 was that the deduction under Section 80P(2) of the Act is claimed by the respondent assessee under Section 80P(2)(d) of the A....