TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 137
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.... Authorities below erred on facts and in law in not allowing deduction u/s 80P(2)(a)(iii) of I. T. Act on Interest received on Investments held with Banks in form of FDR's Rs. 30,08,496/-. 2. That the Authorities below erred in relying on the decision of Hon'ble Supreme Court in the case of Totgars Co-Operative Sale Society Ltd. Vs. ITO without appreciating that it was a sale society and the facts of the case of the assessee are distinguishable from the facts prevailing in the case of Totgars Co-operative Sale Society and hence reliance placed on the said judgement is misplaced. 3. That the Ld. C.I.T. (A) erred on facts and in law in not considering that the A. O. has nowhere demonstrated in the Assessment Order that t....
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....ed on facts and in law in not allowing proportionate deduction for 'Management Expenses and 'Interest paid debited in the Profit and. Loss Account from the gross interest of Rs. 30,08,496/-. (8) That the Authorities erred on facts and in law in not considering that only the real income/profit can be Taxed and accordingly, the expenses incurred in earning the said income has to be determined and deducted from the Gross Income. (9) That the addition made is highly excessive, contrary to the facts, law and principle of natural justice and without providing sufficient time and opportunity to have its say on the reasons relied upon by CIT (A)." 2. The present appeal is barred by 46 days. The assessee has filed an application....
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....e present appeal within the prescribed limitation period. We, therefore, respectfully following the judgment of the Hon'ble Supreme Court in the case of Collector of Land Acquisition Vs. MST. Katiji & Ors 167 ITR 471 (SC) hereby condone the delay and admit the appeal for hearing on merits. 5. The facts in brief are that the assessee is a co-operative society engaged in the business of supplying sugar cane of members/farmers to various sugar mills and also providing credit facilities to its members in addition to marketing of seeds and fertilizers to its members. During the year under consideration, the assessee filed its return of income declaring total income at Rs. Nil after claiming the deduction u/s 80P(2)(a)(iii) of the Income T....
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....that the impugned addition in the present case was also made on the identical basis. It was further contended that all the objections raised by the Revenue were duly considered by the Division Bench of this Tribunal and the issue was decided in favour of the assessee. He, therefore, prayed that the impugned addition be deleted. 7. On the other hand, the Ld. Departmental Representative for the Revenue opposed the submissions and supported the orders of the lower authorities. He further contended that the issue has been decided against the assessee. It was submitted that the assessee had earned interest income from fixed deposits, which does not constitute business income of the assessee society. Therefore, in view of the judgment of the H....
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....erative Rules, is attributable to the activity in which the assessee is engaged and therefore, is eligible to be deducted under section 80P(2)(a) of the Act. 16. We have further observed that the Hon'ble Madras High Court in the case of K. 2058, Saravanampatti Primary Agricultural Co-Operative Credit Societies Ltd. v. Income Tax Officer 426 ITR 251 (Mad), after considering that the Societies was required to maintain a statutory reserve of 25% under the Tamilnadu Cooperative Societies Act held that the same could not be regarded as the surplus funds of the Society as decided in M/s Totgars Cooperative Sale Society Limited (supra) and therefore, it set aside the assessment of the ld. Assessing Officer in the light of the decision of ....
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.... accepted by the Revenue in the consequent assessment, we deem it appropriate to restore the matter in all three cases back to the file of the ld. Assessing Officer for the limited purpose of re-computing the admissible deduction under section 80P with reference to the interest earned on investments made in accordance with sections 58 and 59 of the U.P. Cooperative Societies Act, 1965 and 173 of the U.P. Cooperative Societies Rules, 1968. Ground numbers 1 to 5 are accordingly allowed. With regard to Ground no 6 on the issue of adding back the interest on PF balance of the seasonal employees of the society, we observe that the same cannot be considered to be the investments of the society and accordingly the interest accruing on the said amo....