TaxTMI 
TaxTMI 
2025 (1) TMI 1603
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....Income tax (Appeals), presents this appeal against the same on the following grounds: 1 The Hon'ble CIT (A) has erred in confirming the addition of Rs 18,86,277/-on account of Interest Income received from nationalize banks, it is submitted that Interest Income received from deposits with the bank which is turn to be used for the objects of the society is clearly eligible for deduction u/s 80P(2)(a)(i) of the income Tax Act. 1961. On the facts and circumstances, the addition made towards Interest Income received of Rs. 18,86,277/- is completely illegal and unlawful and the same should be deleted. 2 Without prejudice to the above ground the Hon'ble CIT (A) has erred in considering the Interest Income received f....
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.... No. Name of the Bank Account type Amount (Rs.) 1 Dena Bank Fixed Deposit 15,63,772/- 2 State Bank of India Fixed Deposit 3,22,505/- 3 The Mehsana District Central Co-op Bank Fixed Deposit 1,75,820/- 4 The Mehsana District Central Co-op Bank Saving Account 316/- 5 The Mehsana Urban Co-op Bank Fixed Deposit 5,69,243/- Total 26,31,656/- After taking into account, the assessee's contention, the Assessing Officer disallowed the said deduction and made addition of Rs. 26,31,656/-. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The ld. CIT (A) partly allowed the appeal of the assessee. 5. The....
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....ople to manage both the funds and the overall operations, and hence they are compensated with the salary for their services. Member benefit 2,50,000/- The Kalyan fund constitutes of funds mobilized by the appellant with the intention of benefitting the society's members. The ld. A.R. submitted that in any event once surplus fund is there, it is not automatically that interest income is received, every year executive committee and members have to decide where to keep deposit, how to keep the deposit, how to earn interest etc. and for all these activities various nature of administrative expenses are invariably incurred. The ld. A.R. relied upon the following decisions:- (i) Chansama Talukani Prath Sala, Patan Vs. DCI....
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....ions of sections 57(iii) of the Act the amount expended wholly and exclusively for purpose of earning the income can be allowed as deduction. In the instant case the expenditure debited to the P&L account mainly include interest expenditure of Rs. 93,39,340/ (paid to the members) which is directly relatable to the interest credited to the P&L account of Rs. 1,01,87,962/, being interest received from the members on loans advanced to them. Therefore, it is clear that the interest debited to the P&L account is directly related to the activity of the society. Hence question of allowing this interest expenditure against income from other sources does not arise. On the contrary if the same is allowed, it will amount to double deduction.....