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2012 (7) TMI 41 - ITAT JAIPURExclusion of three items by CIT(A)in computing the deduction u/s. 80P (2)(a)(i) - interest from employees - assessee being a cooperative society - Held that:- Considering the interest income as attributable to the activity of provision of credit facilities by the assessee to its members, by no stretch of imagination, it a part of the assessee’s operational income by providing and accommodating their employees by giving loans. The income so earned would only be assessable u/s. 56, and cannot be considered as undertaking of an activity incidental to its principal or operational activity/s - against assessee. Income of`jeep charges’- Held that:- Whether the collection is from the debtors or from the members, the same is not in fact a source of revenue but only a recoupment of cost. If at all there is a net gain, which could well be, it is only the net income which would in that case stand to be excluded, and that too if the same is not a part of the lending activity to its members - The Revenue has not stated any reason, much less a cogent one, in denying the assessee’s claim, apart from stating of it to be an income from other sources - against revenue. Income from `No Dues Certificates’- Held that:- As the assessee charges a nominal fee from the borrower to issue `no dues certificate’ who wishes to transfer his borrowing or switch to another bank or cooperative society consequently that same cannot be assessed as income from other sources, being only integral to the assessee's principal business of lending - against revenue.
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