TMI Blog2019 (1) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... g credit facilities to its members, is not eligible for deduction under section 80P(2). The Tribunal in earlier occasions on similar issue has taken a consistent view by following above judgment of the Hon’ble jurisdictional High Court. Since orders of the Revenue authorities are in accordance with judgment of the Hon’ble jurisdictional High Court cited supra, no interfere is called for in the impugned orders, which we confirm. However, any expenditure incurred by the assessee for earning such income could be allowed to it, if not already allowed. In other words, the AO has to allow prorata expenses in respect of interest income earned from deposits held with nationalized bank for computing deduction under section 80P(2) of the Act. -Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovar Nigam Ltd., as interest income. The AO was of view that this amount of ₹ 39,34,892/- since earned from non-cooperative bank/nationalized banks, the same has to be treated as income chargeable under the tax Income from other sources , accordingly, the ld.AO by issuing show cause notice, proposed addition of this amount under the provisions of section 56 of the Act. The assessee in its reply submitted that the assessee a primary agriculture credit society providing credit facilities to its members for agriculture purpose. The assessee further pleaded that it has required to maintain liquid funds, therefore, a portion of fund has to be invested even if it is required for giving loan to its members. The funds invested with banks wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d banks, is not eligible for deduction under section 80P(2)(a)(i) of the Act. Since impugned orders of Revenue authorities are in consonance with judgment of the Hon ble High Court cited supra, no interference thereof is required and the appeal of the assessee may be dismissed. 6. Having heard both the parties and on perusal of the record, we find that Assessee is a cooperative society registered under Gujarat Cooperative Societies Act, 1961 and engaged in providing credit facilities to its members. We find that Hon ble jurisdictional High Court in the case of State of India (supra) has held that interest earned from investment made in scheduled bank by a cooperative society engaged in providing credit facilities to its members, is not e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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