Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

The Punjab State Cooperative Federation of House Building Societies Ltd., Chandigarh Versus Commissioner of Income Tax-II, Chandigarh and another

2016 (5) TMI 1153 - PUNJAB AND HARYANA HIGH COURT

Deduction u/s 80P(2)(a)(i) in respect of interest received from employees who are not the members of the assessee-Society denied - Held that:- The Tribunal while accepting the appeal of the revenue and adjudicating the issue against the assessee had clearly noticed that the benefit under Section 80P(2)(a)(i) of the Act is available to the assessee where the interest is earned from the core activity of the assessee-Society and the interest earned from employees would not fall for such deduction u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nder Section 260A of the Income Tax Act, 1961 (in short the Act ) against the order dated 28.4.2015 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench B , Chandigarh (hereinafter referred to as the Tribunal ) in ITA Nos. 847/Chd/2013 and 810/Chd/2013 for the assessment year 2010-11, claiming the following substantial questions of law:- i) Whether in the facts and circumstances of the case, the orders (Annexure A-1), (Annexure A- 3) and partly (Annexure A-2) are legally .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t in law in upholding the expenses of 1% of income attributable to the earning of interest income under the provision of Section 57(iii) of the Income Tax Act, 1961? iv) Whether in the facts and circumstances of the case, the Learned Income Tax Appellate Tribunal has grossly erred in upholding the order of the Assessing Officer and reversing Commissioner of Income Tax (Appeals) Chandigarh with regard to the interest income of ₹ 27,19,241/- received by the appellant as interest on the loans .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

reasoned order and has not been even distinguished? vi) Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal was right in law in holding that the income by way of interest on loans advanced to its employees and the deposits held with schedule banks was chargeable to tax u/s 56 under the head income from other sources without allowing any deduction in respect of cost of funds and proportionate administrative and other expenses u/s 57? 2. Put shortly, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ded off ₹ 37,73,960/-) as net taxable income by levying income tax on the said income and disallowed various claims under Section 80P(2) (a)(i) of the Act. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 22.5.2013 (Annexure A-2) partly allowed the appeal upholding the certain disallowance made by the Assessing Officer and the addition made on account of interest received from commercial b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce of ₹ 27,19,241/- under Section 80P(2)(a)(i) of the Act being amount of interest received by the assessee on various loans advanced to its employees as a condition of service of its employees holding the income as 'income from other sources' and not 'income from business'. Hence, the present appeal by the assessee. 3. We have heard learned counsel for the appellant-assessee. 4. The assessee has filed one appeal against the consolidated order dated 28.4.2015 (Annexure A-3) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Societies Ltd.) whereby the question has been decided in favour of the revenue. Accordingly, question No. (ii) cannot be held to be a substantial question of law. 7. Question Nos. (iii) and (vi) as have been sought to be raised now do not arise from the order of the Tribunal as no such plea was argued before the Tribunal. Thus, no substantial question of law emanates from the order of the Tribunal and, therefore, do not arise for consideration of this Court. 8. Adverting to question Nos. (iv) an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

80P(2)(a)(i) of the Act is available to the assessee where the interest is earned from the core activity of the assessee-Society and the interest earned from employees would not fall for such deduction under Section 80P(2)(a)(i) of the Act. The relevant observations of the Tribunal read thus:- 17. After considering the rival submissions we find that the Hon'ble Supreme Court has clearly held that deduction u/s 80P(2)(a)(i) of the Act is available only in respect of core activities of the So .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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