TaxTMI 
TaxTMI 
2019 (10) TMI 1484
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....er section 263 of the Act in respect of the claim of the assessee of interest of Rs. 8,99,083/- on FDR held with SBI and commission income from MSEB Rs. 8,83,348/-. 3. The Ld. A.R., at the outset, submitted before the Bench that the identical issue has been decided by the co-ordinate bench of the Tribunal in assessee's own case in ITA No.6964/M/2017 A.Y. 2012-13 vide order dated 19.11.2013 wherein identical question has been decided in favour of the assessee. The Ld. A.R., therefore, prayed that following the decision of the coordinate bench in assessee's own case, the order under section 263 may kindly be quashed. 4. The Ld. D.R., on the other hand, relied on the order of Pr. CIT. 5. After hearing both the parties and perusing the mater....
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....39;ble Kamataka High Court has also considered the decision of Todgars Cooperative Sale Society Ltd. (supra) in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra) and held that interest income is attributable to carrying on the business of the assessee and therefore it is liable to be deducted u/s. 80P(2)(a)(i) of the Act. The "SMC" Bench of the Tribunal in the case of Jaoli Taluk Sahakari Patpedhi Maryadit (supra) has followed the decision rendered by Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). For the sake of convenience, we extract below the operative portion of the order passed by the Tribunal in the above said case :- "9. I heard the parties and perused....
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....e. If they deposit this amount in bank so as to 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 SOP of the Act. 9. In this context when we look at the Judgment of the Apex Court in the case of M/s. Totgars Co-operative Sale Society Ltd., on which reliance is placed, the Supreme C....
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....deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P(1) of the Act. In fact similar view is taken by the Andhra Pradesh High Court in the case of C1T v. Andhra Pradesh State co-operative Bank Ltd., [2011] 200 Taxman 220/12 taxmann.com66. In that view of the matter, the order passed by the appellate authorities denying the benefit of deduction of the aforesaid amount is unsustainable in law. Accordingly it is hereby set aside. The substantial question of law is answered in favour of the assessee and against the revenue. Hence, we pass the following order." 11. Respectfully following the decisio....
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.... towards ad-hoc estimation of expenses in relation to such income @ 10% of the gross receipt as against actual and proportionate expenses attributable for the purpose of carrying on such allied activities. This has resulted in higher incidence of taxation owing to denial of deduction under section SOP on such income. We find that eligibility of the assesses for deduction under section SOP of the Act in respect of locker rent income is covered by the decision of the Hon"ble Supreme Court in the case of Mehsana District Central Coop. Bank Ltd. (supra). Therefore, we set-aside the direction of the CIT(A) in this regard and hold that the assessee is eligible for deduction under section SOP of the Act in respect of this income. With respect to t....