TaxTMI 
TaxTMI 
2022 (10) TMI 1266
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....nation petition and an affidavit. I have gone through the contents of the condonation petition and affidavit and the reasons enumerated therein. I am of the considered view that such a delay of 6 days cannot be held to be attributable to the deliberate or malafide conduct of the assessee. The delay was purely circumstantial and un-intentional. The ld. DR did not had any objection for condonation of the delay. Accordingly, I condone the delay of 6 days and the case is heard on merits. 3. The only issue for adjudication is the confirmation of addition of Rs. 1,98,659/- on account of disallowance of interest received from banks other than Co-operative banks as per section 80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter referred to as 't....
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....retation of the Statute where it is said that the business attributable to the assessee means only the interest amount received from its members. But in this case, it was the interest income from banks other than Co-operative banks and co-operative societies. Therefore, it cannot be held to be attributable to the business activities of the assessee. The AO disallowed the interest received from Nationalized banks on investments other than co-operative banks at Rs. 1,98,659/- and added to the income of assessee as 'Income from other sources'. The ld. CIT(A) echoed the voice of the ld. AO and held that the provisions of section 80P(2)(a)(i) of the Act are unambiguous wherein only the income from activity of financing from the members is eligib....
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....alized banks as regards the surplus amount is an activity which is attributable to the business activity of the assessee. Thus, deduction u/s 80P(2)(a)(i) of the Act is allowable. 6. I have heard the rival contentions and analyzed the facts and circumstances and considered the judicial pronouncements placed on record. Admittedly, the assessee is a co-operative society carrying on the business of banking and providing credit facilities to its members thereby the assessee is covered within provisions of section 80P(2)(a)(i) of the Act. Further, the provision says that the whole of the amount of such profits and gains of business would be allowable as deduction under this provision if it is attributable to the activities of the assessee's bus....
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....he Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016) decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has allowed similar deduction. In the said case, the Tribunal discussed the contrary views expressed by the Hon'ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of the Hon'ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowin....
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....fies for exemption u/s. 80P(2)(a)(i) of the Act. The AO as well as the CIT(A) were of the opinion that the interest earned from third parties or non-members does not quality for exemption u/s. 80P. It is an admitted position that the interest so earned should be taxed as 'income from other sources' There is a cleavage of judicial opinion among several High Courts on the issue of eligibility of this kind of income for exemption u/s. 80P(2)(a)(i) of the Act. The Hon'ble Punjab & Haryana High Court in the case of CIT vs. Punjab State Cooperative Federation of Housing Building Societies Ltd. 11 taxmann.com 448, the Hon'ble Gujarat High Court in the case of State Bank of India Vs. CIT 389 ITR 578 (Guj.), the Hon'ble Delhi High Court in the case ....
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....gible for exemption u/s. 80P(2)(a)(i) of the Act. Thus, the grounds of appeal No. 1 & 2 stands allowed." 9. In the aforesaid decision also, the Tribunal relied on another decision of Co-ordinate Bench of Pune in ITA Nos. 559/560/PUN/2018, order dated 11.12.2018 which has also taken a view in favour of the assessee following the judgment of Hon'ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. vs. ITO (supra). 10. Therefore, these decisions clearly have extended the scope and ambit and interpretation of the word 'profits and gains of business' attributable to the activities of the assessee in a way that it has been considered when the assessee is in the business of providing credit facilities and earning interes....