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TMI Blog2021 (12) TMI 780X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessee : Shri Bhupendra Shah For the Department : Shri Sanjay J. Sethi ORDER PER C.N. PRASAD (JM) 1. These two appeals are filed by the assessee against different orders of the Learned Commissioner of Income Tax (Appeals)-3, Mumbai [hereinafter in short Ld.CIT(A) ] dated 12.04.2018 and 18.07.2018 for the A.Y. 2014-15 and 2015-16 respectively. 2. The common grounds raised by the assessee in both these appeals are as under: - 1. In the facts and circumstances of the case and in law, the learned A.O. erred in disallowing deduction claimed of ₹ 8,99,083/- u/s 80P(2)(a)(i) of the Act by disregarding the fact that the interest was received on term deposit from SBI. 2. In the facts and circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntical issue was considered by this Bench of the Tribunal in the case relied upon by Ld A.R and it was decided in favour of the assessee. For the sake of convenience, we extract below operative portion of the order :- 6. We noticed that the learned CIT(A) has taken support of the decision rendered by the Tribunal in the case of Shri Saidatta Cooperative Credit Society Ltd. (supra), wherein the Tribunal has decided this issue against the assessee by considering the decision rendered by Hon'ble Supreme Court in the case of Todgars Cooperative Sale Society Ltd. (supra). However, we noticed that Hon'ble Karnataka High Court has also considered the decision of Todgars Cooperative Sale Society Ltd. (supra) in the case of Tumkur Merch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive a restricted meaning, they have used the expression derived from . The expression attributable to being of wider import, the said expression is used by the legislature whenever they intended to gather receipts from sources other than the actual conduct of the business. A Cooperative Society which is carrying on the business of providing credit facilities to its members, earns profits and gains of business by providing credit facilities to its members. The interest income so derived or the capital, if not immediately required to be lent to the members, they cannot keep the said amount idle. If they deposit this amount in bank so as to earn interest, the said interest income is attributable to the profits and gains of the business of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est income indicated above under Section 56 of the Act. Further they made it clear that they are confining the said judgment to the facts of that case. Therefore it is clear, Supreme Court was not laying down any law. 10. In the instant case, the amount which was invested in banks to earn interest was not an amount due to any members. It was not the liability. It was not shown as liability in their account. In fact this amount which is in the nature of profits and gains, was not immediately required by the assessee for lending money to the members, as there were no takers. Therefore they had deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee from Maharashtra State Electricity Board (MSEB). 8. The Assessing Officer noticed that the assessee was also engaged in the activity of collecting dues from the customers of MSEB on its behalf. In turn, it was getting commission from MSEB. During the year under consideration, the assessee received commission income of ₹ 10.84 lakhs and claimed as deduction u/s 80P(2)(a)(i) of the Act. The Assessing Officer took the view that the assessee has derived commission income from a non-member and hence the same is taxable u/s. 80P(2)(c) of the Act. Accordingly, by allowing deduction of ₹ 50,000/-, the Assessing Officer assessed balance amount of ₹ 10.34 lakhs as income of the assessee under the head income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate expenses attributable for the purpose of carrying on such allied activities. This has resulted in higher incidence of taxation owing to denial of deduction under section 80P on such income. We find that eligibility of the assessee for deduction under section 80P of the Act in respect of locker rent income is covered by the decision of the Hon‟ble Supreme Court in the case of Mehsana District Central Co-op. Bank Ltd. (supra). Therefore, we set-aside the direction of the CIT(A) in this regard and hold that the assessee is eligible for deduction under section 80P of the Act in respect of this income. With respect to the income from running of Ambulance, while holding that the assessee is not eligible for deduction under section 80P(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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