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TMI Blog2021 (4) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... m other sources - HELD THAT:- This issue of interest income being business income or income from other sources was considered by various Benches of the Tribunal and also the jurisdictional High Court wherein the jurisdictional High Court has distinguished the decision of the Hon'ble Supreme Court in the case of Totgar s Cooperative Sale Society vs. ITO [ 2010 (2) TMI 3 - SUPREME COURT] that the facts of the case before them and have held that the interest income from fixed deposits made out of surplus funds available with the assessee is also attributable to the business of the assessee and is accordingly allowable as a deduction u/s 80P of the Act As relying on THE VAVVERU CO-OPERATIVE RURAL BANK LTD. VERSUS THE CHIEF COMMISSIONER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 12,42,951/- to tax. 3. Aggrieved, the assessee preferred an appeal before the CIT (A) who confirmed the order of the Assessing Officer by following the decision of the Hon'ble Supreme Court in the case of Totgar s Cooperative Sale Society vs. ITO reported in (2010) 322 ITR 283 and other decisions. Aggrieved, the assessee is in appeal before the Tribunal by raising the following grounds of appeal: 1. The learned First Appellate Authority confirming the order u/s 143(3) of the I.T. Act is arbitrary and contrary to the provisions of law and facts of the case. 2. The learned First Appellate Authority is not justified in confirming the order disallowing the deduction claimed u/s 80P(2)(a) in respect of ₹ 12,42,951/- bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e jurisdictional High Court has considered the issue at length and has distinguished the decision of the Hon'ble Supreme Court in the case of Totgar s Cooperative Sale Society vs. ITO (Supra) with that of the assessee therein. The relevant paragraphs are as under: 32. In simple terms, the position can be summarized like this. If there is a Co-operative Society, which is carrying on several activities including those activities listed in sub- Clauses (i) to (vii) of Clause (a), the benefit under Clause (a) will be limited only to the profits and gains of business attributable to anyone or more of such activities. But, in case the same Co-operative Society has an income not attributable to anyone or more of the activities listed in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e pedestal. The section confers different types of benefits to different types of societies. Special types of societies are conferred a special benefit. 34. The case before the Supreme Court in Totgars was in respect of a Cooperative Credit Society, which was also marketing the agricultural produce of its members. As seen from the facts disclosed in the decision of the Karnataka High Court in Totgars, from out of which the decision of the Supreme Court arose, the assessee was carrying on the business of marketing agricultural produce of the members of the Society. It is also found from Paragraph-3 of the decision of the Karnataka High Court in Totgars that the business activity other than marketing of the agricultural produce actually ..... X X X X Extracts X X X X X X X X Extracts X X X X
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