TMI Blog2013 (4) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] and Madras Cricket Club Versus Income-tax Officer [ 2009 (11) TMI 586 - MADRAS HIGH COURT] followed. Decided against the assessee. - I.T.A. No.1073/M/2012 - - - Dated:- 19-4-2013 - S/SHRI B.R.MITTAL(JM) AND RAJENDRA(AM) Appellant by : Shri Arvind Kulkarni Respondent by : Shri Mohit Jain ORDER Per B.R.Mittal, JM: The assesee has filed this appeal for assessment year 2005-06 against order dated 2.11.2011 of ld CIT(A)-30, Mumbai on the following grounds: 1. On the facts and in the circumstances of the case and in law, ld CIT(A) erred in dismissing the admitted claim of the assessee in respect of interest earnings on saving with co.o.Bank account under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derived income received by way of interest from co-operative bank on S.B. Account Fixed deposit and assessee claimed deduction of ₹ 3,27,201 u/s. 80P of the Act. Since the assessee has not filed any details, the AO denied the claim of the assessee u/s. 80P amounting to ₹ 3,27,101 and treated the same as income of the assessee. Being aggrieved, assessee filed appeal before ld CIT(A). 3. Ld CIT(A) following the decision of Hon ble Supreme Court in the case of The Totgars Co-operative Sale Society Ltd vs ITO, 322 ITR 283(SC), wherein, it is held that interest from bank deposits and Government securities fall under the head income from other sources and hence, it is taxable u/s.56 of the Act, confirmed the addition of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction u/s. 80P. The Hon ble Madras High Court in the case of Madras Cricket Club vs ITO, 334 ITR 238 (Mad) also held that the principle of mutuality on investment of surplus funds in the form of F.D and securities does not specify the concept of mutuality and, therefore, the benefit of exemption cannot be extended to the interest. Income. We observe that ld CIT(A) following the above decisions confirmed the addition of ₹ 3,27,101 made by the AO. There is no dispute to the fact that assessee has derived income by way of interest income, S.B. account and fixed deposit and, therefore, interest received by the assessee on the surplus funds is to be assessed under the head income from other sources . In view of above and respectfully fol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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