TMI Blog2013 (8) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... ction in respect of any income derived by the cooperative society from any investment with a co-operative society. It is immaterial whether any interest paid to the co-operative society exceeds the interest received from the bank on investments. The section does not speak of any adjustment as sought to be made out. The provision does not indicate any such adjustment in regard to interest derived from the co-operative society from its investment in any other co-operative society - Following decision of CIT vs. Doaba Co-operative Sugar Mills Ltd. [1997 (4) TMI 49 - PUNJAB AND HARYANA High Court] and CIT vs. Dugdh Utpadak Sahkari Sangh Ltd. [2004 (10) TMI 65 - ALLAHABAD High Court] - Decided in favour of Revenue. - Income Tax Appeal No. - 168 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Bank, which will have to be worked out after determining and deducting the expenses debited to the income and expenditure account relatable to the earning of such income. However, the Tribunal observed that the exemption is allowable on interest income as a whole without any adjustment. Being aggrieved, the Department has filed the present appeal. With this background, Sri D.D. Chopra, learned counsel for the Department has justified the order passed by the AO. He also submits that the deduction is allowable on the net amount of income from interest. For this purpose, he relied on the ratio laid down in the case of CIT vs. Dugdh Utpadak Sahkari Sangh Ltd., (2005) 277 ITR 35 (All). On the other hand, learned counsel for the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., (1995) 215 ITR 448 (Raj.) that under Section 80P(2)(d), as for other reliefs under Chapter VI-A, that only net income would be so eligible for deduction. On the other hand, deduction was allowed on the gross amount of interest without interest paid to the same bank in the context of the exemption limit for the income as per the ratio laid down in the case of CIT vs. Doaba Co-operative Sugar Mills Ltd., (1998) 230 ITR 774 (P H). This view was taken by accepting the plea, that relief sanctioned by law cannot be abridged and the plain language of law is required to be followed as a cardinal principle in the interpretation of fiscal laws. Further, Hon'ble Punjab Haryaya High Court observed that Section 80P(2)(d) of the Act allows whol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arry forward. Needless to mention that carry forward of the losses are allowed as per law. For this reason only, no deduction has been claimed by the assessee during the assessment year under consideration as per Section 80P(2)(d) of the Act. However, it has to be placed on record here that in case the assessee's total income works out for the year under consideration to a positive figure at any stage, deduction under the aforesaid section would be available to the assessee in respect of net income only from interest received from co-operative societies/co-operative banks, which will have to be worked out after determining and deducting the expenses debited to Income and Expenditure account relateable to the earning of such income as ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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