9911796707
TMI Blog2015 (4) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... the law laid down therein. The matter is thus, covered in favour of the Revenue by the judgment of Hon'ble Supreme Court. On the basis of above observation it can easily be said that on same analogy even the interest earned from employees cannot be said to be core activity of the society and, therefore, in our opinion, interest earned from employees is not eligible for deduction u/s 80P(2)(a)(i), therefore, we set aside the order of Ld. CIT(A) and restore that of Assessing Officer. - Decided against assessee - ITA No. 847/Chd/2013 & ITA No. 810/Chd/2013 - - - Dated:- 28-4-2015 - SHRI. BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER For the Petitioner : Dr. Amarveer Singh For the Respondent : Shri N. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e raised in this appeal are identical to the issues which are pending before the Hon'ble Supreme Court and, therefore, Assessing Officer should be directed to keep this issue pending and decide the same as per outcome of the decision of Hon'ble Supreme Court. 4. The Revenue on earlier date of hearing was directed to file objections, if any, to this application. Today, the Revenue has filed a letter dated 8.4.2015 written by Dy. CIT Circle 4(1) raising objections to the application filed by the assessee. The objections read as under:- In this regard it is to intimate that the grounds of appeal taken by the assessee in Form No. 8 is different than Grounds of appeal taken before the Supreme Court, in assessment year 2006-07. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Hon'ble High Court, he decided the issue against the assessee. 8. Before us Ld. Counsel for the assessee fairly admitted that issue has been decided against the assessee by the Hon'ble High Court. 9. On the other hand Ld. DR strongly supported the order of CIT(A). 10. After considering the rival submissions we find that this issue has been decided by the Hon'ble High Court in assessee s own case in ITA No. 643 of 2010 vide order dated 10.05.2011. The relevant paras are as under:- 3. We have heard Ld. Counsel for the Revenue. None appears for the assessee despite service. 4. Plea on behalf of the Revenue is that interest received by the assessee from commercial banks was not covered by Section 80P(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. After hearing both the parties we find that during assessment proceedings the Assessing Officer noticed that assessee has earned interest from employees amounting to ₹ 27,19,241/- on which deduction u/s 80P(2)(a)(i) has been claimed. The assessee was asked to justify this claim. In response, it was submitted that because of the service condition, loans were given to the employees on which some interest was earned. The loans were given for the purpose of vehicles or construction of house. It was submitted that issue has been decided by the Tribunal in favour of the assessee in the case of Punjab State Cooperative Agricultural Development Bank. The Assessing Officer did not find force in these submissions and observed that Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her banks cannot be said to be the core activity. In fact, in this regard it has been observed as under:- The interest income arising to a co-operative society carrying on the business of providing credit facilities to its members or marketing of agricultural produce of its members, on the surplus, which is not required immediately for business purposes, from investment in short-term deposits and securities, has to be taxed as income from other sources under section 56 of the Income-tax Act, 1961. Such interest cannot be said to be attributable to the activities of the society, viz., carrying on the business of providing credit facilities to its members or marketing of agricultural produce of its members. Interest income of such societ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
