2015 (8) TMI 15

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..... fact this amount which is in the nature of profits and gains, was not immediately required by the assessee for lending money to the members, as there were no takers. Therefore they had deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P(1) of the Act. - Decided in favour of assessee. - ITA No. 5019/2012 - - - Dated:- 13-7-2015 - Ravi Malimath And G. Narendar,JJ. For the Appellant : Sri H R Kambiyavar For M/s K R Prasad, Adv. For the Respondent : Sri Y V Raviraj, Adv. JUDGMENT The appellant filed return of income for the assessment year 2007-2008 declaring yearly income aft .....

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..... tled to exemption under Section 80P(2)(a)(i) of the Act, in respect of interest received from investments of its surplus funds made with the members of the Society? ii) Whether on the facts and in the circumstances of the case, the interest income received by the appellant from investments/deposits of its surplus fund with the Member Company is exempt from tax on the Principle of Mutuality? 3. On hearing learned counsels, we are of the view that second substantial questions of law does not arise for consideration and the appeal is restricted only to the first substantial question of law. 4. After arguing the matter for sometime, it is brought to our notice that the division bench of this Court in its judgment dated 28.10.2014 pass .....

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..... le to be deducted in terms of Section 80P(1) of the Act. In so holding, the division bench placed reliance on the judgment of the Andhra Pradesh High Court in the case of Commissioner of Income Tax III, Hyderabad Vs. Andhra Pradesh State Co-operative Bank Ltd., reported in (2011) 200 Taxman 220/12. 5. It is submitted that the facts as narrated in the aforesaid judgment are in identical terms to the facts of the present Cooperative Society. There is no difference so far as the facts are concerned. In view of the submission made and the question of law having been answered in the aforesaid judgment of the division bench of this Court, we are of the view that the said decision requires to be followed in this case also. Hence, the substantia .....

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