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TMI Blog2003 (3) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... interest received under section 244A of the I.T. Act as exempt under section 80P(2)( a )( i )". 2. The relevant and material facts for the disposal of this ground of appeal are that the assessee is a co-operative society and is engaged in the business of banking within the meaning of section 80P(2)( a )( i ). The assessee had filed return of income for the year under consideration showing net taxable income at Rs. 18,780 and claimed refund of Rs. 1,76,15,260 on account of TDS. During the year under consideration, the assessee had received interest income amounting to Rs. 44,99,699 being interest under section 244A of the I.T. Act, 1961. It was claimed to be exempt income under section 80P(2)( a )( i ). The Assessing Officer while pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 635/P/95-96 for the assessment year 1993-94 and in some other assessment years and it has been held that the interest income derived under section 244A constitutes business income and hence eligible for deduction under section 80P(2)( a )( i ) of the I.T. Act. For some years, this issue is still pending before the Hon ble ITAT. It was, therefore, urged that the question whether the interest income under section 244A of the I.T. Act is a business income or not, and is eligible for deduction under the said section, is a debatable issue, hence it is beyond the purview of section 143(1)( a ) of the I.T. Act, and so the prima facie adjustment made by the Assessing Officer is bad in law and needs to be deleted. After considering these submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Assessing Officer, submitted that on bare reading of provisions of section 80P(2)( a )( i ), it is clear that interest on income-tax refund under section 244A was not derived from the business of banking or providing credit facility to its member co-operative societies and hence, the same was not eligible for deduction under section 80P(2)( a )( i ) and so the Assessing Officer has rightly made the adjustment by disallowing the claim of impugned interest received by the assessee. 2.3 Ld. AR for the assessee, on the other hand, submitted that since the matter in dispute is debatable and not free from doubt, so the CIT(A) has rightly deleted the adjustment made by the Assessing Officer. He further contended that the issue involved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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