9911796707
TMI Blog2021 (9) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... estored to the file of the A.O. by the coordinate bench in the case of Thannirupantha Primary Agricultural Credit Co-operative Society Ltd. [ 2021 (8) TMI 68 - ITAT BANGALORE] - Following the above said decision we restore this issue to the file of the A.O. for examining it afresh in the light of discussions made. Alternative claim that the expenses incurred to earn the interest income should be allowed u/s 57(iii) of the Act, if it claim for deduction u/s 80P(2)(a)(i) or 80P(2)(d) is not allowed - Since we have already restored the issue of claim of deduction u/s 80P(2)(d) of the Act, we restore this alternative contention also to the file of the A.O., since the claim of the assessee gets support from the decision rendered by Hon ble High Court of Karnataka in the case of Totgars Co-operative Sales Society Ltd [ 2017 (7) TMI 1049 - KARNATAKA HIGH COURT] - ITA No.468/Bang/2020 - - - Dated:- 2-9-2021 - Shri B. R. Baskaran, Accountant Member And Smt. Beena Pillai, Judicial Member For the Appellant : Shri A. Ravish Rao, A.R. For the Respondent : Shri Priyadarshi Mishra, D.R. ORDER PER B.R. BASKARAN, ACCOUNTANT MEMBER: The assessee has fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and gains attributable to the business of providing credit facilities to its members shall be allowed as full deduction. If any activity is carried on with non members as alleged by the assessing officer and confirmed by the learned First Appellate Authority, the profit attributable to such business can only be taxed. Therefore in the case of the appellant if nominal members are not considered as members as alleged by the assessing officer, only such portion of profit attributable to the business with nominal members could be taxed. 6. The appellant has been assessed as a co-operative society and such being the case all benefits available to the appellant as per the provisions of section 80P of the Income Tax Act cannot be denied without a legal provision to do so. The learned First Appellate Authority has erred in not considering this while disposing of the appeal. 7. The appellant craves leave to add, to amend and/or alter any of the foregoing grounds and such other grounds as may be urged at the time of hearing, the appellant prays for allowing the deduction u/s 80P(2)(i) 80P(2)(d). 2. The assessee is a co-operative credit society registered under Karnata ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this issue and restore the same to the file of the A.O for examining it afresh as discussed above. 7. Ground No.2 relate to deduction claimed u/s 80P(2)(d) of the Act. The Ld. A.R. submitted that the assessee is required to maintain deposits with banks to meet the requirement of Statutory liquidity ratio (SLR), which is 28% of total deposits. Since these deposits have been made under legal obligation, it is incidental activity of business intricately connected with the main business of providing credit to the members. He submitted that the SLR deposits stand at ₹ 1,63,35,337/-. Accordingly, he submitted that the interest earned on deposits kept as SLR is eligible for deduction u/s 80P(2)(a)(i) of the Act. 8. The Ld A.R also submitted that the issue of deduction u/s 80P(2)(d) is being restored to the file of A.O. by the Bangalore bench of Tribunal with certain directions and accordingly prayed that this issue may be restored to the file of the A.O for examining afresh by considering all the contentions of the assessee. 9. We heard Ld. D.R. and perused the record. We notice that an identical issue was restored to the file of the A.O. by the coordinate bench in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough the said judgment. The facts of the case before the Hon ble Karnataka High Court was that the Hon ble Court was considering a case relating to Assessment Years 2007-08 to 2011-12. In case decided by the Hon ble Supreme Court in the case of the very same assessee, the Assessment Years involved was Assessment Years 1991-92 to 1999-2000. The nature of interest income for all the Assessment Years was identical. The bone of contention of the Assessee in AY 2007-08 to 2011-12 was that the deduction under Section 80P(2) of the Act is claimed by the respondent assessee under Section 80P(2)(d) of the Act and not under Section 80P(2)(a) of the Act which was the claim in AY 1991-92 to 1999- 2000. The reason given by the Assessee was that in AY 2007-08 to 2011-12 investments and deposits after the Supreme Court's decision against the assessee Totgar's Co-operative Sale Society Ltd. (supra), were shifted from Schedule Banks to Cooperative Bank. U/s.80P(2)(d) of the Act, income by way of interest or dividends derived by a Co-operative Society from its investments with any other Co-operative Society is entitled to deduction of the whole of such interest or dividend income. The claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
