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2023 (7) TMI 1260 - AT - Income TaxRevision u/s 263 - exemption of interest income earned by the assessee cooperative society from other co-operative banks or other banks - debatable issue - HELD THAT:- As relying on TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LIMITED [2015 (2) TMI 995 - KARNATAKA HIGH COURT] interest income earned on fixed deposits with bank partake of the business income which is eligible for deduction u/s 80P(2)(a)(i) of the Act. The above discussion clearly brings out the fact of existence of debate on the issue of taxability of the interest income earned on the deposits made with other co-operative banks or other banks. Therefore, in the light of the law settled by the Hon’ble Supreme Court in the case of Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] the power of revision cannot be exercised by the ld. PCIT in exercising of power vested with him u/s 263 in respect of debatable issue. Decided in favour of assessee.
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