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2011 (12) TMI 241 - RAJASTHAN HIGH COURTValidity of re-opening of Assessment u/s 147/148 – Society admittedly being banking company - limitation and deductibility of the interest income u/s 80P(2) – Held that:- The limitation of 4 years provided in Section 147 is extendable upto 6 years and even more if the case falls within the parameters of Section 149(1)(b) or first proviso to Section 151. Apparently, assessing authority have obtained sanction from the Commissioner u/s 151 and amount of interest is more than Rs. 1 lac as provided u/s 149(1)(b). Thus, it is left open to the assessee to the contend and establish before the learned assessing authority that for the given reasons, such notice is time barred or not. Deduction u/s 80P(2) would not be available to the assessee if such interest income is taxable u/s 56 as 'income from other sources' as held in case of The Totgars' Co-operative Sale Society Ltd vs ITO (2010 - TMI - 35322 - Supreme Court). The petitioner has not even placed any evidence on record showing its governance by RBI under Banking Regulations Act to show that it is exclusively a banking business society. Therefore, it is a question still open and yet to be adjudicated upon by the assessing authority in present proceedings u/s 147/148. Assessee is left free to establish its case before the assessing authority. - Decided against the assessee.
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