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| The Tax Publishers2019 TaxPub(DT) 0474 (Bang-Trib) INCOME TAX ACT, 1961
Section 80(P)
Interest earned from schedule bank or cooperative bank is assessable under head income from other sources and therefore, provisions of section 80P(2)(d) were not applicable to such interest income.
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Co-operative society - Deduction under section 80P - Interest earned from schedule bank or Co-operative Bank -
Assessee co-operative society challenged action of Revenue authorities in not allowing deduction under section 80P(2)(a)(i) on interest income derived from deposit of surplus funds in fixed deposits in Scheduled Bank. Deduction was not allowed for reason that interest income was earned by assessee on deposits.Held: Whether source of funds was assessee's own funds or out of liability, was not subjec-matter of decision of High Court in decision cited by revenue. Hence, on this aspect, issue was restored back to AO for a fresh decision after examining facts in light of judgments of Apex Court rendered in case of The Totgars Co-operative Sale Society Ltd. and of Karnataka High Court in case of Tumkur Merchants Souharda Co-operative Ltd.
Relied:Pr. CIT, ITO v. The Totagars Co-Operative Sale Society (2017) 395 ITR 611 (Karn-HC) : 2017 TaxPub(DT) 1748 (Karn-HC), Tumkur Merchants Souharda Credit Co-operative Ltd. v. ITO, Ward-1, Tumkur [ITA No. 307 of 2014, dt. 28-10-2014) : 2015 TaxPub(DT) 2857 (Karn-HC)].
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
IN THE ITAT, BANGALORE BENCH
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