GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2015 (2) TMI 1132 - ITAT AHMEDABAD

2015 (2) TMI 1132 - ITAT AHMEDABAD - TMI - Claim of deduction u/s.80P(2)(a)(i) denied - interest income earned by the assessee on deposits made out of surplus funds - Held that:- As in M/s Guttigedarara Credit Co-Operative Society Ltd. Versus The Income Tax Officer [2015 (7) TMI 874 - KARNATAKA HIGH COURT] interest income earned by a Credit Co-operative Society on deposits of surplus funds with scheduled bank would qualify for deduction u/s.80P(2)(a)(i) of the Income Tax Act - Decided in favour .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d argumentative in nature. 2. In brief, the grievance of the assessee is that ld. CIT(A) has erred in denying the claim of deduction u/s.80P(2)(a)(i) of interest income amounting to ₹ 3,93,533/- which was earned by the assessee on deposits made out of surplus funds. 3. The brief facts of the case are that the assessee is a Co-operative Society registered under Gujarat Co-operative Society Act, 1961 carrying on the business of providing credit facilities to its member. It has filed its retu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

because such banks were not co-operative banks. Accordingly, ld. A.O. has made an addition of ₹ 3,93,533/-. 4. Appeal to the ld. CIT(A) did not bring any relief to the assessee. 5. With the assistance of ld. Representatives, we have gone through the record carefully. We find that an identical issue was considered by the Hon ble Karnataka High Court in the case of Guttigedarara Credit Co-operative Society Ltd. vs. ITO reported in [2015] 60 taxmann.com 215 (Karnataka). The Hon ble Karnataka .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bers and that the same cannot be considered as investment made for the purpose of earning interest income and consequently passed a perverse order ? (ii) Whether the Tribunal is correct in law in holding that the interest earned on the deposits by the appellant/co-operative society does not qualify for deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961 on the facts and circumstances of the case? (iii) Without prejudice, whether the tribunal is justified in not holding that if at al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s and rival contentions, the undisputed facts which emerge are, certain sums of interest were earned from short-term deposits and from savings bank account. The assessee is a Co-operative Society providing credit facilities to its members. It is not carrying on any other business. The interest income earned by the assessee by providing credit facilities to its members is deposited in the banks for a short duration which has earned interest. Therefore, whether this interest is attributable to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

b-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely: (a) in the case of co-operative society engaged in- (i) carrying on the business of banking or providing credit facilities to its members, or (ii) to (vii) ** ** ** the whole of the amount of profits and gains of business attributable to any one or more of such activities." 9. The word 'attributable' used in the said Section is of great importance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

electricity) on which the learned Solicitor-General relied, it will be pertinent to observe that the legislature has deliberately used the expression "attributable to" and not the expression "derived from". It cannot be disputed that the expression "attributable to" is certainly wider in import than the expression "derived from". Had the expression "derived from" been used, it could have with some force been contended that a balancing charge ari .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ributable to", has been used, the legislature intended to cover receipts from sources other than the actual conduct of the business of generation and distribution of electricity.' 10. Therefore, the word "attributable to" is certainly wider in import than the expression "derived from . Whenever the legislature wanted to give a restricted meaning, they have used the expression derived from". The expression "attributable to" being of wider import, the said ex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in bank so as to earn interest, the said interest income is attributable to the profits and gains of the business of providing credit facilities to its members only. The society is not carrying on any separate business for earning such interest income. The income so derived is the amount of profits and gains of business attributable to the activity of carrying on the business of banking or providing credit facilities to its members by a co-operative society and is liable to be deducted from the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

embers was retained in many cases. The said retained amount which was payable to its members from whom produce was bought. was invested in a short-term deposit/security. Such an amount which was retained by the assessee-Sociery was a liability and it was shown in the balance sheet on the liability side. Therefore, to that extent, such interest income cannot be said to be attributable either to the activity mentioned in Section 80P(2)(a)(i) of the Act or under Section 80P(2)(a)(iii) of the Act. T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version