9911796707
TMI Blog2015 (8) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant filed return of income for the assessment year 2007-2008 declaring yearly income after claiming deduction under the 80P(2)(a)(i) of the Income Tax Act, 1961 (for short 'the Act'). During the assessment proceedings, it was noticed that the appellant had invested its surplus in Bilagi Sugar Mills Ltd., Badagandi and Bilagi Pattana Sahakari Bank, Bilagi. The interest earned on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010) 322 ITR 283. The judgment of the division bench of this Court was confirmed. Thereafter, the Appellate Tribunal relying on the said judgment, dismissed the appeal. Hence, the present appeal. 2. By order dated 22.11.2012, the appeal was admitted to consider the following two substantial questions of law: "i) Whether on the facts and in the circumstances of the case the appellant was entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court in Totgarh case held that the Supreme Court was dealing with a case where the assessee- Co-operative Society, apart from providing credit facilities to the members, was also in the business of marketing of agricultural produce grown by its members. The sale consideration received from marketing agricultural produce of its members was retained in many cases. The said retai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not the liability. It was not shown as liability in their account. Therefore, the amount was deposited in the bank so as to earn interest. The 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. In so holding, the division bench placed reliance on the judgment of the Andhra Pradesh High Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
