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TMI Blog2018 (5) TMI 1545X X X X Extracts X X X X X X X X Extracts X X X X ..... were heard together and are being disposed off by this consolidated order. 2. Brief facts of the case are as follows:- The assessee is a primary agricultural credit society, registered under the Kerala Co-operative Societies Act, 1969. It is engaged in providing credit facilities to its members. For the assessment years 2010-2011, 2011-2013 and 2014-2015, the returns of income was filed claiming deduction u/s 80P(2) of the Income-tax Act, 1961. The assessments for the above mentioned assessment years were completed by denying the claim of deduction u/s 80P(2) of the I.T.Act. The Assessing Officer had denied the claim of deduction u/s 80P(2) of the I.T.Act for the reason that the assessee was primarily engaged in the business of banking a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntical grounds are raised and they read as follows:- "A. The Orders of the assessing officer as well as the appellate authority to the extent of objections made herein after, are against the facts and circumstances of the case under consideration and hence opposed to the provisions of law. B. The assessing authority as well as the appellate authority went wrong in finding that deduction claimed u/s 80P(2) of the IT Act, for which a party does not take in interest earned on deposits made with district co-operative bank. As per section 80P(2)(d) deduction is available in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative bank being a Central Society a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned AR, apart from relying on the grounds raised, submitted that the issue in question is squarely covered by the orders of the Tribunal in the cases of The Padne SCB Ltd. v. ITO [ITA No.584 & 585/Coch/2017 order dated 11.01.2018] and M/s.Mutholy SCB Ltd. v. ITO [ITA No.11/Coch/2014 order dated 23.03.2017]. 6. The learned Departmental Representative relied on the orders of the Assessing Officer and the CIT(A). 7. We have heard the rival submissions and perused the material on record. The solitary issue for our consideration is whether interest received on investments with sub-treasuries and co-operative banks are to be assessed as income under the head "business" or "income from other sources". The assessee has also claimed that the int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble High Court and remanded to the ITAT. The Tribunal, subsequent to the remand, had passed an order dated 23.03.2017 in favour of the assessee by holding that interest income that was received by the assessee on investments made with sub-treasuries and co-operative banks are entitled to deduction u/s 80P(2)(a)(i) of the I.T.Act. The Tribunal relied on the Board Circular No.18/2015 dated 02.11.2015 for deciding the issue in favour of the assessee. The Tribunal in the cases of The Padne SCB Ltd. v. ITO and M/s.Mutholy SCB Ltd. v. ITO (supra) had held that assessee doing the business banking / providing credit facilities to its members when it parks its surplus funds with sub-treasuries and other co-operative banks as per the directions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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