| |
| The Tax Publishers2019 TaxPub(DT) 7930 (Coch-Trib) INCOME TAX ACT, 1961
Section 80P(a)(i)
Interest income earned from investments with treasuries and banks was part of banking activity and said interest income was eligible to be assessed as 'Income from business', instead of 'Income from other sources'. However, as regards grant of deduction under section 80P on such interest income matter was referred back to AO to determine assessee's eligibility for deduction as each assessment year is a separate unit and AO was not bound by the registration certificate issued by Registrar of Kerala Co-operative Society classifying assessee-society as a co-operative society.
|
Deduction under section 80P(a)(i) - Co-operative society - Interest on investments with treasuries and other banks -
Assessee was a co-operative society registered under the Kerala Co-operative Societies Act, 1969 claimed deduction under section 80P(2) with regard to interest income received by it on investments made with District Co-operative Banks. AO denied assessee's claim.Held: Interest income earned from investments with treasuriesand banks was part of banking activity and said interest income was eligible to be assessed as 'income from business' instead of 'income from other sources'. However, as regards grant of deduction under section 80P on such interest income matter was referred back to AO to determine assessee\s eligibility for deduction as each assessment year is a separate unit and AO was not bound by the registration certificate issued by Registrar of Kerala Co-operative Society classifying assessee-society as a co-operative society.
Followed:Mavilayi Service Co-operative Bank Ltd. v. CIT (ITA No. 97/2016 Order, dated 19-3-2019) : 2019 TaxPub(DT) 4909 (Ker-HC).
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2015-2016
IN THE ITAT, COCHIN BENCH
 SUBSCRIBE FOR FULL CONTENT
|