TaxTMI 
TaxTMI 
TaxTMI 
2021 (10) TMI 280
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....essees pointing out apparent error in the order of the Tribunal dated 9.1.2020 passed in ITA Nos.2018/Ahd/2019 for the Asstt.Year 2014-15 in the case of Vir Transport Operators' Co-op. Credit service Society Ltd., and ITA No.2019 and 97/Ahd/2017 for the Asstt.Years 2014-15 and 2013-14 in the case of the Lunawada Taluka Primary School Teachers Co-op Credit Society Ltd. All these MAs. are disposed of by this common order. 2. In the MA it has been pleaded that these appeals have been decided by the Tribunal on 9.1.2020. The Tribunal has allowed the appeals for statistical purpose and directed the AO to grant deduction under section 80P(2)(d) of the Income Tax Act, 1961 of the interest income earned from co-operative societies. The finding rec....
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....ourt. Accordingly, she put reliance upon the following decisions: 1. Doaba Co-op. Sugar Mills Ltd., 230 ITR 774 (P&H); 2. Surat Vankar Sahakari Sangh Ltd., 72 taxmann.com 169; 3. Surendrangar District co-op Milk Producers Union Ltd., 179 ITD 690; 4. Jaipur Zila Dugdh Utpadak Sahakari Sangh Ltd. ITA Nos.512 & 513/JP/2019; 5. Bardoli Vibhag Gram Vikas Co-op. credit Society Ltd., 189 ITD 601; 4. According to the ld.counsel for the assessee expression "whole of such income" has been employed in section 80P(2)(d), and therefore, for the purpose of computing deduction admissible under section 80P(2)(d) of the Act, income which is to be excluded is the gross income of interest mentioned in section 80P(2)(d) of the Act. Thus, the AO....
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....ssessee and disallowed the excess claim of deduction in this regard for all the years under consideration. The amount disallowed by the Assessing Officer and deduction granted by the Assessing Officer is tabularized and recorded as under": 7. Hon'ble Court thereafter put reliance upon the decision of Hon'ble Punjab & Haryana High Court's decision and held that gross interest income is to be granted as deduction under section 80P(2)(d) of the Act. The finding recorded by the Hon'ble Court reads as under: "8.1 Similarly, in the case of Doaba Co-operative Sugar Mills Ltd (supra), the Punjab & Haryana High Court has held as under: '5. The contention of Mr. Gupta, learned counsel appearing for the Revenue, is that the Tribunal was wro....
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....he one, Hansraj Gordhandas v. H. H. Dave, Assistant Collector of Central Excise and Customs, AIR 1970 SC 755, 759. 8. Section 80P(2)(d) of the Act allows whole deduction of an income by way of interest or dividends derived by the co-operative society from its investment with any other co-operative society. This provision does not make any distinction in regard to source of the investment because this Section envisages deduction in respect of any income derived by the cooperative society from any investment with a co-operative society. It is immaterial whether any interest paid to the co- operative society exceeds the interest received from the bank on investments. The Revenue is not required to look to the nature of the investment whethe....
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....no connection with the carrying on of the business or the earning of the income and the option depends upon personal considerations or upon motives of the assessee, that expenditure cannot possibly come within the ambit of Section 12(2). In the present case, the loan was taken for business purpose more particularly purchase of yarn and not for fixed deposits. 9. In view of the above, the questions raised in the present appeals are answered in favour of the assessee and against the revenue. The order passed by the Tribunal is accordingly quashed and set aside." 8. We find that in view of the decision of Hon'ble jurisdictional High Court, the Tribunal has committed an error which is apparent one by directing the AO to compute only net in....