INCOME TAX ACT, 1961

Section 80P(2)(a)(i)

Deduction under section 80P(2)(a)(i) - Co-operative society - Interest income from temporary parking of funds -

Assessee was a primary agricultural credit society. It claimed deduction under section 80P(2)(a)(i) in respect of interest income earned from bank. Pr. CIT denied deduction under section 80P(2)(a)(i) relying on decision in case of Totagars Co-operative Sale Society((2017) 395 ITR 611 (Karn) : 2017 TaxPub(DT) 1748 (Karn-HC)). Held: The issue should be considered by the AO after examining the facts in light of the judgment Totagars Co-operative Sales Society (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC), wherein it was held that interest income in respect of temporary parking of own funds not immediately required is eligible for deduction under section 80P(2)(a)(i). Thus, it would not be subject-matter of decision of the Totagars Co-operative Sale Society ((2017) 395 ITR 611 (Karn) : 2017 TaxPub(DT) 1748 (Karn-HC)) relied on by Pr. CIT.

Followed:Totagars Co-operative Sales Society (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC).

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2015-16

SUBSCRIBE FOR FULL CONTENT