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TMI Blog2023 (4) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... (a)(i) 80P(2)(d) to the tune of Rs. 1014680/- though the Appellant is very much entitled for the same 2. The appellant craves leave to add, alter, amend, and modify the aforesaid grounds of appeal at or any time before the hearing as may be advised from time to time." 2. The fact in brief is that assessee is a cooperative society carrying on the business of giving credit facilities to its members for the last several years. The assessee has filed return of income declaring total income of Rs.Nil after claiming the deduction u/s 80P of the Act on 26.11.2017. The CPC has disallowed the deduction claimed by the assessee of Rs. 10,14,680/- u/s 80P of the Act as per intimation issued u/s 143(1) of the Act on 05.12.2018. 3. The assessee filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide credit facilities to its members. During the year under consideration the assessee society has claimed deduction u/s 80P of the Act in respect of interest received on surplus fund deposited with the following bank: "1. The Thane Janta Sahkari Bank Ltd. (Co-op Bank) 2. The Saraswat Co-operative Bank Ltd. (Co-op Bank) 3. The Mumbai District Central Co-op Bank Ltd. (Co-op Bank) 4. Bank of Maharashtra." During the course of appellate proceedings before me the ld. Counsel contended that on similar issue and identical facts the ITAT, Mumbai in the case of Navbharat Urban Cooperative Credit Society Ltd. Vs. CIT, vide ITA No. 5288-5289/Mum/2018 for A.Y. 2014-15 & 2015-16 dated 25.11.2021 has adjudicated the similar issue on identi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the same shall form part of its business income. The Hon'ble High Court upheld the said view by duly considering the decision rendered by Hon'ble Supreme Court in the case of Totgars Cooperative Sale Society Ltd (supra). For the sake of convenience, I extract below the observations made by the Hon'ble Karnataka High Court:- "8. Therefore, the word "attributable to" is certainly wider in import than the expression "derived from". Whenever the legislature wanted to give 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invested in a short-term deposit/security. Such an amount which was retained by the assessee - Society was a liability and it was shown in the balance sheet on the liability side. Therefore, to that extent, such interest income cannot be said to be attributable either to the activity mentioned in Section 80P(2)(a)(i) of the Act or under Section 80P(2)(a)(iii) of the Act. Therefore in the facts of the said case, the Apex Court held the assessing officer was right in taxing the interest 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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