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TMI Blog2021 (4) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... IVE SALE SOCIETY LTD. VERSUS THE INCOME TAX OFFICER, WARD-1, SIRSI [ 2015 (4) TMI 829 - KARNATAKA HIGH COURT] the assessee is entitled for deduction of proportionate cost, administrative and other expenses. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO with similar directions. Appeal of the assessee is treated as allowed for statistical purposes. - ITA No. 1450/Bang/2019 - - - Dated:- 21-4-2021 - SHRI B. R. BASKARAN , ACCOUNTANT MEMBER AND SMT. BEENA PILLAI , JUDICIAL MEMBER Appellant by : Smt. Sheethal S. Borkar , A. R. Respondent by : Smt. R. Premi , D. R. ORDER PER B. R. BASKARAN , ACCOUNTANT MEMBER: The appeal filed by the assessee is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the assessee before Ld CIT(A) challenging the additions made by the AO was dismissed. Hence the assessee has filed this appeal before the Tribunal. The Ld A.R submitted that both the above said issues are covered by the decision rendered by the co-ordinate bench in the case of Karkala Co-op S. Bank Ltd (ITA Nos.1288 1289/Bang/2019 relating to Assessment Year: 2015-16 2016-17 order dated 18-02-2021. She submitted that the co-ordinate bench has restored the first issue to the file of AO with the direction to apply the decision rendered by Hon ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. Vs.CIT (2021) 123 taxmann.com 161 (SC). With regard to the second issue, the co-ordinate bench has directed the AO t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Society Ltd. (supra) and observed that the ratio decidendi of Citizen Cooperative Society Ltd. must be given effect to. Accordingly, he submitted that the assessee should be allowed deduction u/s 80P(2)(a)(i) of the Act. 5. The Ld. D.R., on the contrary, submitted that the issue of deduction needs to be examined afresh in the light of decision rendered by Hon ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. (supra). Accordingly, he submitted that this issue may be restored to the file of the A.O. 6. We heard the parties on this issue and perused the record. We find merit in the submission made by Ld. D.R. Since the Hon ble Supreme Court has settled many issues in the decision rendered by it in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s 80P(2)(a)(i) of the Act. In AY 2016-17, the AO assessed the interest income received on bank deposits under the head Income from other sources and denied deduction claimed u/s 80P(2)(d) of the Act. The Ld CIT(A) confirmed the action of the AO on this issue. 8. The Ld. A.R. submitted that the assessee is entitled to claim deduction allowable u/s 57 of the Act in respect of cost of funds and proportionate administrative and other expenses. In support of this submission, the Ld. A.R. placed reliance on the decision rendered by Hon ble High Court of Karnataka in the case of Totgars Co-operative Sale Society Ltd. Vs. ITO (2015) 58 taxmann.com 35 (Karn). The Ld. A.R. submitted that the assessee in the above said case had put fort ..... X X X X Extracts X X X X X X X X Extracts X X X X
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