9911796707
TMI Blog2016 (3) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... ievously erred in assuming jurisdiction u/s 263 of the Act. (2) That on facts, and in law, the learned CIT-Ahmedabad-I, has grievously erred in holding that appellant is not entitled to deduction u/s 80P(2)(a)(i) of the Act in respect of interest income of Rs. 42,14,854/-. (3) That on facts and in law, it ought to have been held that entire income of appellant is deductible u/s 80P(2)(a)(i) of the Act, as prayed for. (4) The appellant craves leave to add, alter, amend any ground of appeal. 2. The assessee is a co-operative society engaged in providing credit facilities to its members. The original return of income was filed on 25.09.2010 declaring total income at Rs. Nil. The order u/s 143(3) dated 05.11.2012 was passed after d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessment order passed u/s 143(3) dated 05.11.2012 was erroneous and prejudicial to the interest of revenue. Hence, the said assessment for AY 2010-11 dated 05.11.2012 is cancelled and the AO is directed to make fresh assessment of the total income of the assessee for the said assessment year." 2.2 Before us, the ld. Authorized Representative for the assessee submitted that this issue is squarely covered in favour of the assessee by the order of Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd vs. ITO, reported in [2015] 55 taxmann.com 447 (Karnataka), wherein in similar set of facts, the Hon'ble Karnataka High Court held as under:- "A Cooperative Society which is carrying on the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order passed by the appellate authorities denying the benefit of deduction on the aforesaid amount is unsustainable in law. [Para 10]" 2.3 Nothing contrary was brought to our knowledge on behalf of the Revenue. In the present case, it is undisputed that the amount in question, which was invested in SBI to earn interest, was not an amount due to any members. It was not the liability. It was also not shown as liability in their account. This amount, which is in the nature of profits and gains, was not immediately required by the assessee for lending money to the members, as there were no takers. Therefore, the assessee had deposited the money in SBI so as to earn interest. The said interest income was attributable to carrying on the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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