TMI Blog2019 (8) TMI 1193X X X X Extracts X X X X X X X X Extracts X X X X ..... ered in the context of Co-operative Societies Act as prevalent in a different state and not the State of Karnataka and the issue needs to be adjudicated having regard to the provisions of the Karnataka State Co-operative Societies Act. The issue was remanded for fresh consideration in the light of the law applicable to Co-operative Societies in the State of Karnataka. Since the facts and circumstances are identical, we deem it fit and proper to restore the issue to the AO for fresh consideration in the light of the observations made in the case of M/S.Hemmadi Fishermen s Primary Co-operative Society Ltd. (supra). Examination of claim for deduction in respect of interest income received on deposits with Co-operative banks and deduction on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in ITA No.706/Bang/2019, ₹ 33,58,900/- by the Assessee in ITA No.764/Bang/2019 and a sum of ₹ 47,52,224/- by the Assessee in ITA No.941/Bang/2019. 4. The second issue for consideration in ITA No.760/Bang/2019 is as to whether the revenue authorities were justified in denying the benefit of deduction u/s.80P(2)(d) of the Act in respect of interest income of ₹ 10,36,996/- which is comprised of the following interest incomes viz., (i) Interest received from SCDCC Bank ₹ 9,52,170 (ii) ICIC Bank ₹ 57,940 (iii) Vijaya Bank ₹ 12,230 (iv) Syndicate Bank ₹ 14,564 The order impugned in this appeal arises o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered by a co-ordinate Bench of ITAT Bangalore in the case of M/S.Hemmadi Fishermen s Primary Co-operative Society Ltd. Vs. The ITO, Ward-2, Udupi in ITA No.774/Bang/2019 (AY 2016-17) order dated 28.6.2019 and it was held therein that the decision of the Hon ble Supreme Court in the case of Citizen s Co-operative Society Ltd., was rendered in the context of Co-operative Societies Act as prevalent in a different state and not the State of Karnataka and the issue needs to be adjudicated having regard to the provisions of the Karnataka State Co-operative Societies Act. The issue was remanded for fresh consideration in the light of the law applicable to Co-operative Societies in the State of Karnataka. Since the facts and circumstances are ide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered the decision of the Hon ble Apex Court in the case of The Totgar s Co-operative Sales Society (supra) and held that interest income in respect of temporary parkiong of own surplus funds not immediately required is eligible for deduction u/s.80P(2)(a)(i) of the Act. The learned DR relied on a subsequent decision of the Hon ble Karnataka High Court in the case of PCIT Vs. Totgars Co-operative Sale Society Ltd. 395 ITR 611 (Karn.). 9. We have carefully gone through the judgment relied by the learned DR. The facts of the case before the Hon ble Karnataka High Court in the decision cited by the learned DR was that the Hon ble Court was considering a case relating to Assessment Years 2007-2008 to 2011- 2012. In case deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is thus clear that the source of funds out of which investments were made remained the same in AY 2007-08 to 2011-12 and in AY 1991-92 to 1999-2000 decided by the Hon ble Supreme Court. Therefore whether the source of funds were Assessee s own funds or out of liability was not subject matter of the decision of the Hon ble Karnataka High Court in the decision cited by the learned DR. To this extent the decision of the Hon ble Karnataka High Court in the case of Tumukur Merchants Souharda Co-operative Ltd. (supra) still holds good. Hence, on this aspect, the issue should be restored back to the AO for a fresh decision after examing the facts in the light of these judgment of the Hon ble Apex Court rendered in the case of The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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