TMI Blog2019 (1) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... rom bank, the facts of the present case has to be examined in the case of PCIT and Another Vs. Totagars Co-operative Sale Society Ltd. [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] and Tumkur Merchants Souharda Credit Cooperative Ltd. vs. ITO [2015 (2) TMI 995 - KARNATAKA HIGH COURT] and if it is found that the facts of present case are in line with the facts in the case of PCIT and Another Vs. Totagars Co-operative Sale Society Ltd. (supra), then the issue should be decided against the assessee and if it is found that the facts of present case are in line with the facts in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. vs. ITO (supra), then the issue should be decided in favour of the assessee - ITA No.3402/Bang/2018 - - - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld.CIT(A) erred in denying the deduction under section 80P(2) of the Income Tax Act in respect of interest income received from various bank and in doing so a) The Ld.CIT (A) failed to appreciate that the interest income from other banks are attributable to profits and gains of the business of extending credit facilities to Appellant's members. b) The Ld.CIT(A) erred in applying the Decision of the Honorable Supreme Court in the case of Totagars Co-Operative Society and failed to appreciate that the business of the Appellant consists entirely of extending credit facilities only to its members and the interest income from various banks arose only on account of keeping the surplus funds for the time being in anticipat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be considered as co-operative bank. At this juncture, the bench pointed out that as per the same judgment of Hon ble Apex Court, in Para 24, it was held that in that case, the assessee has filed certificate from Reserve Bank of India regarding the nature of business of the assessee and in the same case, the RBI has itself clarified that the business of the assessee does not amount to that of a co-operative bank. The bench pointed out that in the present case also, the assessee has to obtain a certificate from RBI regarding his nature of business. In reply, it was submitted by ld. AR of assessee that if the matter is restored back to the file of AO then the assessee will obtain and submit certificate from RBI within reasonable time. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents of Hon'ble Karnataka High Court. In reply, ld. AR of assessee also agreed to this proposition put forward by the bench. The ld. DR of revenue supported the orders of authorities below. 5. I have considered the rival submissions and in view of above discussion, I set aside the order of CIT (A) and restore the matter back to the file of AO for fresh decision on two aspects. First aspect to be decided by him is this as to whether the assessee is a co-operative bank or not. For deciding this aspect of the matter, the assessee is directed to obtain certificate from RBI regarding the nature of business of assessee society within reasonable time and if it is certified by RBI that the assessee s business is not that of a cooperative ban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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