9911796707
TMI Blog2018 (12) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... bound to maintain overdraft with State Bank of India and for that purpose it had to place FDRs, on which the interest income was earned, such an interest arising on these FDRs, in the given circumstances, is in the nature of income under the head “Profits and grains from business or profession” and cannot be characterized “Income from other sources” as held by the authorities below. Once the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed order, for the sake of convenience. 2. Facts relating to the A.Y. 2012-13 are that the assessee is a Co-operative Society engaged in the business of trading of Fertilizers and Agro related goods to its members. The assessee claimed deduction u/s. 80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter also called as the Act ) on interest income from banks amounting to ₹ 5,62,430/-, othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rising under the head Profits and gains from business or profession . Negating such opinion, the AO treated interest income as arising under the head Income from other sources . Relying on the judgment of Hon ble Supreme Court in the case of Totgar s Cooperative Sale Society Ltd. Vs. ITO (2010) 322 ITR 283 (SC) , the AO denied the benefit of deduction on such interest income. Facts and circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facilities. It was necessary for the reason that all its suppliers, listed above, insisted on having account with the State Bank of India so as to facilitate the business dealings. The reliance of the authorities below on the judgment in the case of Totgar s Cooperative Sale Society Ltd. (supra) is misconceived in as much as the Hon ble Supreme Court has held that interest income from surplus ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
