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TMI Blog2022 (11) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... short term deposits for a period less than one year has been held to be business income and hence, eligible for deduction u/s.80P(2)(a)(i). The ld. DR could not draw my attention towards any provision drawing a distinction between deposits/investments held for a period of more than one year to be treated as Income from other sources and for a period less than one year as Business income . It is seen that the assessee falls under the jurisdiction of Hon ble Karnataka High Court. In Tumur Merchants Souharda Credit Cooperative Ltd. [ 2015 (2) TMI 995 - KARNATAKA HIGH COURT] has held the amount of interest received from deposits kept with banks as eligible for deduction u/s.80P of the Act. In view of the fact that the relevant distinction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the assessee is a Cooperative Society which declared income of Rs.10,15,647/- and claimed deduction u/s.80P(2)(a)(i) for the equal amount. The Assessing Officer (AO) held the assessee to be a primary Cooperative Society and hence, not eligible for deduction in terms of section 80P(4). The ld. CIT(A), however, partly reversed the order of the AO on this account by holding that a Cooperative Society , like the assessee, registered as Cooperative Society providing credit facilities to its members and not registered with the RBI, cannot, in principle, be denied deduction u/s.80P(2)(a)(i) of the Act. That is how, he directed the AO to allow deduction u/s.80P(2) in respect of business activity of running the credit facility to its member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s than one year has been held to be business income and hence, eligible for deduction u/s.80P(2)(a)(i). The ld. DR could not draw my attention towards any provision drawing a distinction between deposits/investments held for a period of more than one year to be treated as Income from other sources and for a period less than one year as Business income . It is seen that the assessee falls under the jurisdiction of Hon ble Karnataka High Court. In Tumur Merchants Souharda Credit Cooperative Ltd., Vs. ITO (2015) 230 taxmann, the Hon ble High Court has held the amount of interest received from deposits kept with banks as eligible for deduction u/s.80P of the Act. In view of the fact that the relevant distinction between the short term depo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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