TMI Blog2015 (10) TMI 2583X X X X Extracts X X X X X X X X Extracts X X X X ..... duction may not be automatic. We are therefore of the opinion that the issue requires a fresh look by the AO. We set aside the orders of authorities below and remit the issue back to the file of the AO for consideration afresh in accordance with law. - Decided in favour of revenue for statistical purpose.. - I.T.A No.679/Bang/2015 - - - Dated:- 1-10-2015 - SHRI. N. V. VASUDEVAN, JUDICIAL MEMBER AND SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER Assessee by : Shri. S. Ramasubramanian, CA Revenue by : Shri. T. N. Prakash, JCIT O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : In this appeal filed by Revenue, it is aggrieved that assessee was allowed deduction u/s.80P(2)(d) of the Income-tax Act, 1961 ( the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut that the Apex Court in the aforesaid judgment has not laid down any law. 5. Per contra, learned counsel for the Revenue strongly relied on the said judgment of the Supreme Court and submitted, the case is covered by that judgment of the Apex Court and no case for interference is made out. 6. From the aforesaid facts and rival contentions, the undisputed facts which emerges is, the sum of ₹ 1,77,305/- represents the interest earned from short-term deposits and from savings bank account. The assessee is a Cooperative 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merging from the expression attributable to occurring in the phrase profits and gains attributable to the business of the specified industry here generation and distribution of 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 arising from the sale of old machinery and buildings cannot be regarded as profits and gains derived from the conduct of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 gross total income under Section 80P of the Act. 9. In this context when we look at the judgment of the Apex Court in the case of M/s. Totgars Co-operative Sale Society Ltd., on which reliance is placed, the Supreme Court was dealing with a case where the Society, apart from providing credit facilities to the members, was also in the business of marketing of agricultural produce grown by its members. The sale consideration r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew is taken by the Andhra Pradesh High Court in the case of COMMISSIONER OF INCOME-TAX III, HYDERABAD vs. ANDHRA PRADESH STATE COOPERATIVE BANK LTD., reported in (2011) 200 TAXMAN 220/12 In that view of the matter, the order passed by the appellate authorities denying the benefit of deduction of the aforesaid amount is unsustainable in law. Accordingly it is hereby set aside. The substantial question of law is answered in favour of the assessee and against the revenue. Hence, we pass the following order. Appeal is allowed. 05. The question before us is whether assessee was eligible for deduction u/s.80P(2)(a) or 80P(2)(d) of the Act, on the interest received by it. What we find is that in case the interest was received from surplus inve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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