2015 (10) TMI 1408

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..... nition clause in the Banking Regulation Act, 1949 wherein section 5(b) defines banking as under : '(b) 'banking' means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft order or otherwise.' From this definition, it is manifest that deposit of money which earns interest falls under the definition of 'banking'. In the instant case, the assessee had the excess money with them which was not taken by its shareholders. Instead of keeping money idle with the assessee, they have deposited the same in a private limited company so that it can earn interest. In the instant case, the appellant-assessee deposited the same in a private l .....

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..... h credit business. The learned authorised representative further submitted that the amounts which were held in deposits with bank were not out of profits or surplus but out of deposits received from the members. 3. Per contra, the learned Departmental representative submitted that the hon'ble apex court in the case of Totgar's Co-operative Sale Society Ltd. [2010] 322 ITR 283 (SC) had held that income attributable to the business of a co-operative society would be eligible under section 80P(2)(a)(i) only if it fell under any of the clause mentioned therein. Interest from deposit held with bank was nothing but Income from other sources . According to him, the lower authorities were justified in denying deduction under section 80P .....

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..... as under : '(b) 'banking' means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft order or otherwise.' 6. From this definition, it is manifest that deposit of money which earns interest falls under the definition of 'banking'. In the instant case, the assessee had the excess money with them which was not taken by its shareholders. Instead of keeping money idle with the assessee, they have deposited the same in a private limited company so that it can earn interest. In the instant case, the appellant-assessee deposited the same in a private limited company namely M/s. Renuka Sugars Ltd. 7. This co .....

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