TaxTMI 
TaxTMI 
2017 (2) TMI 1500
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....on grounds are involved in these appeals therefore for the sake of convenience these four appeals are heard together and are being disposed of by this composite order. 2. Common grounds raised in these appeals are as under : 1. On the facts in the circumstance of the case. The order of the CIT (A) dated 21.10.2016 for the Assessment year 2013-14, is not maintainable in law and liable to be set aside. 2. On the facts in the circumstance of the case, the Learned CIT (A) had appreciated that the appellant assessee is primary agricultural Society and registered under Co-Operative Society act, and the facility are provided that its members only, and claimed exempt u/s. 80(P)(2)(a)(i) accordingly under the act is correct thus the CIT (A) ....
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....be set aside 8. Without prejudice, confirming the levy of tax partly and levied interest and penalty are excessive and arbitrary and ought to have been deleted substantially. 9. For such other grounds that may be urged at the time of hearing and it is prayed that kindly may allow the appeal in the interest of justice and equity. 3. The only issue raises in these appeals is regarding the disallowance of claim of Section 80P of the Income Tax Act, 1961 (in short 'the Act') in respect of the interest on Fixed Deposits with the Bank. The assessee is a co-operative society which provides credit facilities to the farmers. The assessee earned interest on fixed deposits from SBI, Agriculture Development Bank, Station Road Branch, Be....
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....ttigedarara Co-operative Society Ltd. Vs. ITO (supra). The Hon'ble High Court has understood the decision of Hon'ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. Vs. ITO (supra) and held that when the society has surplus funds which were made fixed deposit in the bank to earn interest, the same is eligible for deduction under Section 80P of the Act. In the case of M/s. Guttigedarara Co-operative Society Ltd. Vs. ITO (supra), the Hon'ble High Court has again considered this issue in paras 7 to 12 as under : "7, From the aforesaid facts and rival contentions, the undisputed facts which emerge are, certain sums of interest were earned from short-term deposits and from savings bank account. The assessee is....
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....he statute in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84 (at page 93) as under:- 'As regards the aspect emerging from the expression "attributable to" occurring in the phrase "profits and gains attributable to the business of" the specified industry (here generation and distribution of electricity) on which the learned Solicitor-General relied, it will be pertinent to observe that the legislature has deliberately used the expression "attributable to" and not the expression "derived from". It cannot be disputed that the expression "attributable to" is certainly wider in import than the expression "derived from". Had the expression "derived from" been used, it could have with some force been contende....
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....earn interest, the said interest income is attributable to the profits and gains of the business of providing credit facilities to its members only. The society is not carrying on any separate business for earning such interest income. The income so derived is the amount of profits and gains of business attributable to the activity of carrying on the business of banking or providing credit facilities to its members by a co-operative society and is liable to be deducted from the gross total income under Section 80P of the Act. 11. In this context when we look at the judgment of the Apex Court in Totgars Co-operative Sale Society's case (supra), on which reliance is placed, the Supreme Court was dealing with a case where the assessee/C....