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TMI Blog2016 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is an income from other sources and the same view has been confirmed by the CIT(A). After careful consideration of the orders of the authorities below and also considering the section 80P(2)(a)(i) of the Act, we find that the assessee has deposited some funds in the KCTB and DCCB and other banks when those funds are not necessary for the immediate business purpose. Therefore, they had deposited the money in a bank to earn the interest. The said interest income was attributable to the carrying of business of banking and therefore it was liable to be deducted in terms of section 80P(2)(a)(i) of the Act. The Hon’ble Karnataka High Court in case of Guttigedarara Credit Cooperative Society Ltd. Vs. ITO (2015 (7) TMI 874 - KARNATA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-Tax Act, 1961 (hereinafter called as the Act ) on 30.12.2009 by determining the total income of the assessee at ₹ 60,98,516/-. On being aggrieved, assessee carried matter in appeal before the CIT(A) and raised mainly two grounds of appeals. The first ground relating to deduction u/s 80P of the Act and the second relating to taxability of interest income. 3. It was submitted before the Ld. CIT(A) that by mistake the assessee credit society did not claim the deduction u/s 80P of the Act and requested the A.O. to allow the deduction u/s 80P of the Act. The A.O. rejected the request of the assessee on the ground that the assessee did not file a revised return to make the claim and also in view of the decision of the Hon ble Supre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. In so far as taxability of interest on fixed deposit is concerned, it was submitted before the Ld. CIT(A) that the assessee collects the deposits from members and lends money to members for interest and while carrying out such activity, it has parked certain funds as a fixed deposits in the banks. Therefore, merely because the funds were parked in a bank deposit, the income generated from such deposits could not be denied a character of business income as the activity of society is to earn interest income by collecting the deposits from the members. The Ld. CIT(A) after considering the above submissions of the assessee and by following the decision of the assessee s own case for assessment year 2009-10, he has held that interest inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is appeal squarely covered by the jurisdictional High Court in the case of CIT Vs. Andhra Pradesh State Co-operative Bank Ltd. (2011) 336 ITR 516 (AP) and also relied on the Hon ble Karnataka High Court judgement in the case of Guttigedarara Credit Co-operative Society Ltd. Vs. ITO (2015) 66 (I) ITCL 343 (Karn-HC). 9. We have heard both the parties, perused the records and gone through the orders of the authorities below. The assessee is Kakinada Co-operative Building Society engaged in the business of collecting the deposits, lending loans to its members for purchase of sites, buildings and construction of houses. When the assessee society receives the deposits from the members in the course of its business, if the deposits received is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. CIT(A)o has observed that the assessee by mistake has not claimed deduction u/s 80P of the Act. The A.O. for the assessment year 2008-09 has already allowed the claim of the assessee u/s 80P of the Act and therefore directed the A.O. to grant the deduction u/s 80P of the Act subject to fulfilling the conditions. We find no infirmity in the order passed by the Ld. CIT(A). This appeal raised by the revenue is dismissed. 11. So far as in appeal no.349/Vizag/2013 for the assessment year 2009-10, facts and the issue involved is similar to the assessment year 2007-08 in ITA No.348/Vizag/2013. In view of the above, this appeal filed by the assessee is allowed. 12. In the result, the appeals filed by the assessee vide ITA Nos.348 349/V ..... X X X X Extracts X X X X X X X X Extracts X X X X
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