Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 512 - AT - Income TaxEligibility to deduction u/s 80P(2)(a)(i)/80P(2)(d) - assessee has earned interest income on investments made in fixed deposits with Saraswat Co-operative Bank Ltd. and Apna Sahkari Bank Ltd. - HELD THAT:- The Hon’ble Supreme Court of India in the case of Totgars, Co-operative Sale Society Ltd. vs. ITO [2010 (2) TMI 3 - SUPREME COURT] has held that interest earned by assessee would come in category of 'Income from other sources' taxable under section 56 and would not qualify for deduction as business income under section 80P(2)(a)(i) of the Act. Similar view has been expressed by the Hon’ble Gujarat High Court in the case of State Bank of India vs. CIT, [2016 (7) TMI 516 - GUJARAT HIGH COURT]. In the light of aforesaid decisions, primary contention of the assessee is liable to be rejected. Therefore, ground No.1 of the appeal is dismissed. Deduction of interest income on investment with Co-operative Banks u/s 80P (2)(d) - whether interest income derived from deposits with cooperative banks is eligible for deduction under section 80P(2)(d) of the Act or not has not crystallised so far? - HELD THAT:- Coordinate Bench of the Tribunal in the case of Kaliandas Udyog Bhavan Premises Co-op Society Ltd[2018 (4) TMI 1678 - ITAT MUMBAI] after considering various decisions by Hon’ble High Courts and the Tribunal and the provisions of the Act, has held that interest income derived by a co-operative society from investments with a co-operative bank, would be entitled for deduction under section 80P(2)(d). Following the decision of Totagars Co-operative Sale Society [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] and SURAT VANKAR SAHAKARI SANGH LTD [2016 (7) TMI 1217 - GUJARAT HIGH COURT] the deduction claimed by the assessee under section 80P(2)(d) of the Act in respect interest derived from investments with the cooperative banks is allowed. We find merit in alternate contention raised by the assessee. Assessee is allowed the benefit of deduction under section 80P(2)(d) on the interest income earned from Cooperative Banks.
|