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TMI Blog2018 (1) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... e Co-operative society is required to satisfy the criteria for availing benefit of Sec. 80P(2)(d) i.e. the interest income should be from other co-operative society, whereas in the assessee society's case the interest income is from other than Co-operative Banks with regard to investment made. 3. The appellant prays the order of the Assessing Officer may be restored. 4. The appellant prays to adduce such further evidence to substantiate his case. 3. The learned Authorized Representative for the assessee at the outset pointed out that the issue raised in the present appeal is squarely covered by the orders of Tribunal in the case of assessee itself for different years starting from assessment year 2009-10. 4. The only issue raised in the present appeal is against claim of deduction under section 80P(2)(a)(i) of the Act at Rs. 53,03,446/- in respect of interest earned on fixed deposits with Nationalized Banks. 5. Briefly in the facts of the case, the assessee society was a registered Cooperative society carrying on Banking business and was registered under the Maharashtra State Cooperative Act. It provides facilities to its members, advanced loan to the members, charged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also in ITA No.2006/PUN/2014, relating to assessment year 2010-11, vide order dated 04.05.2017. The Tribunal in assessment year 2011-12 had made reference to the ratio laid down in the case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit in ITA No.604/PN/2014, relating to assessment year 2010-11, order dated 19.08.2015, wherein reliance was placed on the ratio laid down by the Hon‟ble High Court of Karnataka in Tumkur Merchants Souhards Credit Cooperative Ltd. Vs. ITO reported in 55 taxmann.com 447, wherein it was held that interest earned from short term deposits with the bank was entitled to deduction under section 80P(2)(a)(i) of the Act. The Hon‟ble High Court of Karnataka after considering the decision of the Hon'ble Supreme Court in the case of Totgar‟s Cooperative Sale Society Ltd. Vs. ITO (2010) 322 ITR 283 (SC) held that the interest earned by such Cooperative Societies on short term deposits with scheduled banks is eligible for deduction under section 80P(2)(a)(i) of the Act. The Tribunal also considered the contrary decision of the Hon‟ble High Court of Delhi in Mantola Co-operative Thrift & Credit Society Ltd. Vs. CIT and held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny income referred to in subsection (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in subsection (2), in computing the total income of the assessee. (2) The sums referred to in subsection (1) shall be the following, namely: (a) in the case of cooperative society engaged in- (i) carrying on the business of banking or providing credit facilities to its members, or (ii) to (vii) xx xx xx the whole of the amount of profits and gains of business attributable to any one or more of such activities." 7. The word 'attributable' used in the said section is of great importance. The Apex Court had an occasion to consider the meaning of the word 'attributable' as supposed to derive from its use in various other provisions of the statute in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84 (SC) as under: ' As regards the aspect emerging 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 SolicitorGeneral relied, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t when we look at the judgment of the Apex Court in the case of M/s. Totgars Cooperative Sale Society Ltd., on which reliance is placed, the Supreme Court was dealing with a case where the assesseeCooperative 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 received from marketing agricultural produce of its members was retained in many cases. The said retained amount which was payable to its members from whom produce was bought, was invested in a shortterm deposit/security. Such an amount which was retained by the assessee-Society was a liability and it was shown in the balance sheet on the liability side. Therefore, to that extent, such interest income cannot be said to be attributable either to the activity mentioned in Section 80P(2)(a)(i) of the Act or under Section 80P(2)(a)(iii) of the Act. Therefore in the facts of the said case, the Apex Court held the assessing officer was right in taxing the interest income indicated above under Section 56 of the Act. Further they made it clear that they are confining the said judgment to the facts of that case. There ..... X X X X Extracts X X X X X X X X Extracts X X X X
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