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TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1824
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....The Assessee has raised the following grounds of appeal : "1. The Learned A.O. has erred is not appreciating that the appellant being Co-Operative Societies Act with engaged into business of providing credit facility to its members was eligible to claim to claim deduction under section 80(P)(2)(a) (i) of the Act in respect entire business income and accordingly, the disallowance was completely void which needs to be quashed. 2. Interest Income is added Rs. 19,73,718/-. The income of interest is not acceptable by A.O. 3. The appellant craves leave to add, alter, amend or delete any of the above ground of appeal." Findings & Analysis : 2. We have heard both the parties and perused the records. In this cas....
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....n co-operative Societies. The benefit is not available u/s. 80P(2)(d) of the Act as the Assessee society has earned interest income out of surplus funds in private banks ICICI Bank Ltd and HDFC Bank. 3. Further, it is pertinent to mention here that the aforementioned private banks ICICI Bank Ltd and HDFC Bank are NOT members of the Assessee Society Hence, the deposits made by the Assessee society in non-members is against the principle of mutuality. In view of the above, the contentions of the Assessee Society are hereby rejected and the claim of deduction of Assessee Society u/s. 80P(2)(a)(i) amounting to Rs. 19,73,718/- is disallowed and is accordingly, brought to be taxed in the hands of the Assessee society under ....
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....the petitioners place strong reliance upon a decision of the Division Bench of this court in CIT v. Andhra Pradesh State Co-operative Bank Ltd. [2011] 12 taxmann.com 66/200 Taxman 200/336 ITR 516, the Revenue places strong reliance upon the decision of the Supreme Court in Totgar's Co-operative Sale Society Ltd. v. ITO [2010] 188 Taxman 282/322 ITR 283. ........................ 34. The case before the Supreme Court in Totgar's Co-operative Sale Society Ltd.'s case (supra) was in respect of a co-operative credit society, which was also marketing the agricultural produce of its members. As seen from the facts disclosed in the decision of the Karnataka High Court in Totgars, from out of which the decision of the S....
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.... made by the petitioners in nationalised banks is admittedly the income that the petitioners derived from the activities listed in sub-clauses (i) to (vii) of clause (a). The character of such income may not be lost, especially when the statute uses the expression "attributable to" and not any one of the two expressions, namely, "derived from" or "directly attributable to". 37. Therefore, we are of the considered view that the petitioners are entitled to succeed. Hence, the writ petitions are allowed, and the order of the Assessing Officer, in so far as it relates to treating the interest income as something not allowable as a deduction under section 80P(2)(a), is set aside. "Unquote. 6.2 Thus, the Hon'ble High Court of AP & TS ....
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....institution, and earns interest on such deposits, such interest would cease to form part of its profits and gains attributable to its business of providing credit facilities to its members? In our view that question must be answered in the negative, since we cannot accept the contention of the Revenue that the interest earned on those deposits loses its character as profits/gains attributable to the main business of the assessee. It is not as though the assessee in the instant case had used the surplus amount [the profit earned by it] for an investment or activity that was unrelated to its main business, and earned additional income by way of interest or gain through such activity. The assessee had only deposited the profit earned by it in ....