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TMI Blog2017 (1) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... e on bank deposits cannot be considered as income ‘attributable’ to the activities of the assessee. To be eligible to claim deduction u/s. 80P(2)(c) the assessee has to show direct or proximate connection of the earnings/income with the activities of the society. It is not the case of assessee where the deposits with the nationalized Bank were made to comply with statutory condition. Had it been so, the assessee would have got the benefit of section 80P(2)(c) in the light of decision in the case of CIT Vs. Co-operative Cane Development Union Ltd.(1979 (2) TMI 91 - ALLAHABAD High Court ). In the present case we observe that there is not even a remote link between the interest income earned on deposits with nationalized banks and the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ond appeal before the Tribunal. 3. Shri Ashok Kothary appearing on behalf of the assessee submitted that the interest earned by the assessee on fixed deposits with nationalized banks have been disallowed by the authorities below on the ground that interest earning from Scheduled Banks cannot be considered other activity envisaged in section 80P as the same is mere parking of fund. The ld. AR submitted that the case of the assessee is squarely covered by the decision of Hon'ble Allahabad High Court in the case of Chief Commissioner of Income Tax (Admn.) Vs. Kisan Sahkari Chini Mills Ltd. reported as 273 ITR 42 and the decision of Hyderabad Bench of the Tribunal in the case of Film Nagar Co-operative Housing Society Ltd. Vs. Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of section 80P(2)(c) (d) are reproduced herein- under: 80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely :- a. xxxxxxxxxx b. xxxxxxxxxx (c) in the case of a co-operative society engaged in activities90 other than those specified in clause (a) or clause (b) (either independently of, or in addition to, all or any of the activities so specified), so much of its prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim deduction u/s. 80P(2)(c) the assessee has to show direct or proximate connection of the earnings/income with the activities of the society. It is not the case of assessee where the deposits with the nationalized Bank were made to comply with statutory condition. Had it been so, the assessee would have got the benefit of section 80P(2)(c) in the light of decision in the case of CIT Vs. Co-operative Cane Development Union Ltd. reported as 118 ITR 770 (All). 7. Reliance has been placed by the ld. AR on the decision of Hon'ble Allahabad High Court in the case of Chief Commissioner of Income Tax (Admn.) Vs. Kisan Sahkari Chini Mills Ltd. (supra). In the said case the assessee - Co-operative Sugar Mill was under construction. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Tribunal in the case of Film Nagar Co-operative Housing Society Ltd. Vs. Income Tax Officer (supra). We find that even the said decision of Co-ordinate Bench would not support the case of assessee as the facts of the case in hand is at variance and no analogy can be drawn between the two cases. 9. We are well aware that the Courts have held that the expression attributable to is of wide import and have to be construed liberally. However, a link has to be established between activities of the Cooperative Society and income/gains earned. In the present case we observe that there is not even a remote link between the interest income earned on deposits with nationalized banks and the activities of the assessee. Thus, in the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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