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2022 (9) TMI 475 - AT - Income TaxExemption u/s. 80P(2)(a)(i) - Taxability of interest income earned by cooperative society from Syndicate Bank - appellant society earned interest income on FDs with Syndicate Bank - Admittedly, these fixed deposits were not made for the purpose of procurement of bank guarantee for its business purpose - HELD THAT:- Fixed deposits were not made for the purpose of procurement of bank guarantee for its business purpose. The material on record clearly does not indicate the source of the investments. It is settled position of law that if the FDs are placed out of the surplus generated by the cooperative society, such interest income, partakes the same character as the business income of the cooperative society. In the present case, the material on record does not indicate the source of funds for making FDs in Syndicate Bank. Therefore, we are of the considered opinion that the matter requires to be remanded to the file of the Assessing Officer to decide the issue of eligibility of the interest income for exemption under the provisions of section 80P of the Act in terms of the decision of this Tribunal in NASHIK ROAD NAGARI SAHKARI PATSANSTHA LIMITED [2021 (12) TMI 1259 - ITAT PUNE] - Thus, the grounds of appeal filed by the assessee stands partly allowed.
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