TMI Blog2019 (5) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the coordinate Bench order of the Tribunal, we hold that the CIT(A) is justified in holding that interest income received should be assessed as `income from business . As regards the grant of deduction u/s 80P of the I.T.Act on such interest income, the Assessing Officer shall follow the law laid down by the Larger Bench of the Hon ble jurisdictional High Court in the case of The Mavilayi Service Co-operative Bank Ltd. V. CIT [ 2019 (3) TMI 1580 - KERALA HIGH COURT] and examine the activities of the assessee-society before grant of deduction u/s 80P - Appeal filed by the Revenue is allowed for statistical purposes. . - ITA No.117/Coch/2019 - - - Dated:- 16-5-2019 - Shri Chandra Poojari, AM And Shri George George K, JM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from business and not `income from other sources . The CIT(A) relied on the co-ordinate Bench order of the Tribunal in the case of Kizhathadiyoor Service Cooperative Bank Limited in ITA No.525/Coch/2014 (Order dated 20.07.2016). 5. Revenue being aggrieved by the order of the CIT(A), has filed the present appeal before the Tribunal raising the following grounds:- 1. The Learned Commissioner of Income tax (Appeals), Trivandrum erred in concluding that the interest income earned by the appellant from other Banks and Treasury is eligible for deduction u/s 80P(2)(a))(i) the Act. 2. The present appeal involves substantial question of law and whether on the facts and in the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities and such interest income was received on investments made with co-operative banks and other scheduled banks. The co-ordinate Bench order of the Tribunal in the case of Kizhathadiyoor Service Co-operative Bank Limited (supra) had held that such interest income received should be assessed as `income from business instead of `income from other sources . In view of the coordinate Bench order of the Tribunal, we hold that the CIT(A) is justified in holding that interest income received should be assessed as `income from business . However, as regards the grant of deduction u/s 80P of the I.T.Act on such interest income, the Assessing Officer shall follow the law laid down by the Larger Bench of the Hon ble jurisdictional High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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