Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 1116 - AT - Income TaxEntitlement to deduction u/s 80P(2)(a)(i) - interest earned from employees - Held that:- Hon'ble Supreme Court in The Totgars Cooperative Sale Society Ltd vs ITO [2010 (2) TMI 3 - SUPREME COURT ] holding that interest on bank deposits of Government Securities derived by a Cooperative Society could not be attributed to the activities of the Society of providing various facilities to its members and was taxable under Section 56 being income from other sources. It appears that since the judgment of the Tribunal is prior to the judgement of the Hon'ble Supreme Court relied upon on behalf of the Revenue. The Tribunal did not have advantage of the law laid down therein. The matter is thus, covered in favour of the Revenue by the judgment of Hon'ble Supreme Court. On the basis of above observation it can easily be said that on same analogy even the interest earned from employees cannot be said to be core activity of the society and, therefore, in our opinion, interest earned from employees is not eligible for deduction u/s 80P(2)(a)(i), therefore, we set aside the order of Ld. CIT(A) and restore that of Assessing Officer. - Decided against assessee
|