TMI Blog2014 (10) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondent : Shri P.S. Naik ORDER PER SUSHMA CHOWLA, JM: This appeal filed by the assessee is against the order of CIT(A), Kolhapur dated 08.11.2013 relating to assessment year 2009-10 against order passed under section 143(3) of the Income-tax Act. 2. The assessee has raised the following grounds of appeal: 1.1 The learned AO failed to appreciate that the assessee is exclusively engaged in the business of providing credit facility to its member and hence the entire income of the appellant is eligible for deduction u/s. 80P(2)(a)(i) of Income tax Act. 1.2 The learned AO failed to appreciate that the interest from the deposits with Scheduled / nationalized Bank is nothing but income attributable to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of books of account, the Assessing Officer noted that the assessee society mainly earned income from interest from loans and advances given to the members and from other co-operative societies. The assessee also deposited its surplus funds with the banks and earned interest income thereon. The assessee had claimed deduction under section 80P(2)(a)(i) of the Act in respect of the whole of interest income i.e. ₹ 60,86,519/-. The assessee was show caused to explain as to why the deduction under section 80P(2)(a)(i) of the Act was available to it on the interest income derived from the deposits in the bank. Reliance was placed on the ratio laid down by the Hon ble Supreme Court in the case of The Totgars Co-operative Sale Society Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, the denial of deduction under section 80P(2)(a)(i) of the Act was upheld by the CIT(A). 8. The assessee is in appeal before us against the order of CIT(A). We find that the Pune Bench of the Tribunal in the case of another cooperative society i.e. Shri Venkatesh Nagari Sah. Pat Sanstha Maryadit Vs. ITO in ITA No.2178/PN/2013, had after considering similar objections, has raised in the present appeal had decided the issue in favour of the assessee. The learned Authorized Representative for the assessee has filed the copies of the decision of the Pune Bench of the Tribunal in Niphad Nagari Sahakari Patsanstha Ltd. (supra) on record and the learned Departmental Representative for the Revenue has neither controverted the same n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... banks other than cooperative banks, interest on mutual funds long term and short term capital gain on mutual funds etc. While doing so, he held that the decision in the case of Totagar s Cooperative Sale Society Ltd. (Supra) is not applicable to the facts of the present case since in that case the amount invested in short term deposits and securities was not out of interest bearing deposits collected from members but out of sale proceeds of agricultural produce of farmer members marketed by the society. Further, the Hon ble Apex Court has considered only the latter part of section 80P(2)(a)(i), i.e. income of a cooperative society engaged in providing credit facilities to its members is eligible for deduction and has not considered the ear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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