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TMI Blog2017 (3) TMI 1476X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier years the provisions under which relief is claimed by the assessee is part of exemption provisions whose purpose is also to encourage prescribed activities of such institutions and therefore as per settled judicial principal in this regard such provisions are always to be given a beneficial interpretation with a view to advance the legislative intent. From the facts and financial figures on record we also note that the income of interest is attributable to and arises from working funds in an integrated manner and for this reason also we find that interest cannot be separated from the overall income and activities of the Trust. For the reasons above we therefore hold that the interest income earned by the assessee is entitled to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption claimed under s.10 (23B) of the Act is not admissible in law in so far as interest concerned. 4. The CIT(A) in first appeal deleted the disallowance so made relying upon the decision of the Coordinate Bench of ITAT Rajkot Bench on the identical issue in assessee's own case for earlier years. 5. It is the case on behest of the AO that the decision of the CIT(A) is not correct. It was submitted by the Ld.DR that that the decision of the ITAT in earlier years has not been agreed and appeal under s.260A of the Act has been preferred by the Department vide Tax Appeal No.1744 of 2010 for AY 2004-05 dated 20/10/2011 which is pending for adjudication. 6. The Ld.AR, on the other hand, referred to decisions of the Coordinate Bench of the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose is also not in dispute. As has been so observed by the CIT(A)-1, Rajkot, and which observations has not been controverted by the learned DR, all the funds of the assessee constitute a common pool and the source and the destination of the said funds is the sole business of the assessee which is manufacturing and marketing of Khadi and allied products. These facts are not under dispute nor were any argument put forward by the D.R. to controvert the saem. The Hon.Gujarat High Court in the case of CIT v/s Baroda People's Co-Operative Bank Ltd (280 ITR 282) whilst dealing with, amongst other issues, the issue of applicability of the provisions of sec-80P to the interest income earned by the banks from investments in various securities ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven a beneficial interpretation with a view to advance the legislative intent. From the facts and financial figures on record we also note that the income of interest is attributable to and arises from working funds in an integrated manner and for this reason also we find that interest cannot be separated from the overall income and activities of the Trust. For the reasons above we therefore hold that the interest income earned by the assessee is entitled to the exemption u/s.10(23B) of the Act. This ground of appeal of the department is therefore dismissed." 8. As noted, the issue has already been addressed in assessee's own case in earlier years. For the parity of reasoning consistent with the decision of the same rank, the issues rais ..... X X X X Extracts X X X X X X X X Extracts X X X X
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