TMI Blog2019 (1) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... d. (2015 (2) TMI 995 - KARNATAKA HIGH COURT). We also make it clear that the examination of claim for deduction in respect of interest income of ₹ 2,14,13,128/- received on deposits from other Co-operative Societies and with Co-operative banks will be made only u/s.80P(2)(a)(i) and in so far as deduction u/s.80P(2)(d) of the Act is concerned, the same becomes not allowable in view of the decision of Karnataka High Court in the case of PCIT Vs. Totgars Cooperative Sale Society Ltd. (2017 (7) TMI 1049 - KARNATAKA HIGH COURT). - Appeal by the Revenue treated as allowed for statistical purposes. - ITA No.1853/Bang/2017 - - - Dated:- 11-1-2019 - SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER For T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging the AO s action in denying it the deduction claimed u/s 80P(2)(d) of the Act. Before the CIT(A), the assessee contended that the income earned by it was primarily from other co-operative societies and co-operative banks only; which is claimed as deduction u/s 80P(2)(d) of the Act and that it is not a bank as concluded by the AO. The CIT(A), following the decisions of the Hon ble Karnataka High Court in the case of Totagars Co-operative Sale Society in (2017) 392 ITR 74 (Kar) and of the co-ordinate bench of this Tribunal in the case of Menasi Seemeya Group Gramagala Seva Sahakari Sangha Niyamitha in ITA No.609 and 610/Bang/2014; which was on similar facts; allowed the assessee s claim for deduction u/s 80P(2)(d) of the Act. 4. Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 ITR 283 (SC) and held that interest income in respect of temporary parking of own surplus funds not immediately required is eligible for deduction u/s.80P(2)(a)(i) of the Act. The learned DR relied on a subsequent decision of the Hon'ble Karnataka High Court in the case of PCIT Vs. Totgars Co-operative Sale Society Ltd. 395 ITR 611 (Karn.). 7. We have carefully perused the judgment relied by the learned DR. The facts of the case before the Hon'ble Karnataka High Court in the decision cited by the learned DR was that the Hon'ble Court was considering a case relating to Assessment Years 2007-2008 to 2011- 2012. In case decided by the Hon'ble Supreme Court in the case of the very same Assessee, the Assessment years involve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n AY 2007-08 to 2011-12 and in AY 1991-92 to 1999-2000 decided by the Hon'ble Supreme Court. Therefore, whether the source of funds were Assessee's own funds or out of liability was not subject matter of the decision of the Hon'ble Karnataka High Court in the decision cited by the learned DR. To this extent the decision of the Hon'ble Karnataka High Court in the case of Tumukur Merchants Souharda Co-operative Ltd. (supra) still holds good. Hence, on this aspect, the issue should be restored back to the AO for a fresh decision after examining the facts in the light of these judgment of the Hon'ble Apex Court rendered in the case of The Totgars Co-operative Sale Society Ltd. (supra) and of Hon'ble Karnataka High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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