TMI Blog2017 (3) TMI 1795X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.7.2016. This appeal pertains to Assessment Year 2013-14 as against appeal decided in respect of assessment order dated 18.1.2016 passed u/s. 143(3) of the Income Tax Act, 1961(hereinafter referred to as the Act) by the ACIT 1(1), Bhopal [hereinafter referred to as the AO]. 1. In ITA No. 1055/Ind/2016 grounds of appeal taken by the revenue read as under :- 1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of ₹ 1,15,29,031/- rightly made by the A.O. to the income of the assessee as it is not eligible for deduction u/s 80P of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition by ignoring the fact that income not attributable to business activities of the society are notn eligible for deduction u/s 80P of the Income Tax Act, 1961. 3. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition by ignoring the ruling of Hon'ble Supreme Court in the case of Totgars Cooperative Sale Society Ltd. vs. ITO (2010) wherein while interpreti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its members and, therefore, covered u/s 80P(2)(a)(i) of the Act . The learned CIT(A), therefore, following the decision of the Tribunal dated 16.5.2008 in ITA No. 41/Ind/2007, allowed the claim of the assessee. 1.3 Against the above order of the learned CIT(A), the Revenue has filed the present appeal before the Tribunal. Before us, the learned DR while refuting the order of the learned CIT(A), strongly supported the order of the Assessing Officer. The learned DR submitted that since the interest income earned by the assessee from fixed deposits is income from commercialised banks which are not members of the assessee society, therefore, deduction under section 80P(2)(a)(i) of the Act is not allowable. He further submitted that the learned CIT(A) has allowed the claim of the assessee on the basis of various orders of the Tribunal against which the Revenue has filed appeal u/s 260A of the Act before the Hon'ble High Court of Madhya Pradesh. He, therefore, submitted that since the matter is sub-judice before the Hon'ble High Court, the learned CIT(A) was not justified in allowing the claim of the assessee and as such his order deserves to be set aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer is not satisfied and is in appealbefore us. 3. While learned Departmental Representative fairly accepts that the issue is covered in favour of the assessee by order of the cooperative Bench of this Tribunal as also an unreported judgment of Hon ble Bombay High Court in the case of ITO vs. The Mahanagar Cooperative Bank ltd., dated 28.7.2011 in ITA No.123 of 2010 , he places his reliance of Hon ble Supreme Court s judgment in the case of The Totgars Cooperative Sale Society ltd, 229 CTR 209(SC). When it was pointed out to him that Hon ble Bombay High Court in the case of The MahanagarCooperative Bank ltd., has duly considered the said judgment of Hon ble Supreme Court in the case of Totgars Cooperative Sale Society ltd (supra), he had nothing to say except to reiterate that what has been held by Hon ble Supreme Court in the case of The Mahanagar Cooperative Bank ltd.(supra) applies equally in thecase of The Mahanagar Cooperative Bank ltd(supra). 4. We find that the issue is squarely covered in favour of the assessee by Hon ble Bombay High court s judgment in the case of The Mahanagar Cooperative Bank ltd (supra) as also coordinate Bench of this Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited (supra). We, therefore, hold that the decision of the Hon'ble Supreme Court in the case of Totgars Cooperative Sale Society Ltd. (supra) is not applicable to the present case. 1.5.2 We further find that the identical issue has also been decided by Income Tax Appellate Tribunal, Indore Bench of the Tribunal for the assessment years 2003-04, 2006-07 and 2007-08 in the case of the assessee itself. While deciding the appeal of the assessee for the assessment year 2006-07 the Tribunal vide its order dated 21.2.2012 in ITA No. 315/Ind/2011 has held as under :- 8. After hearing the rival submissions and going through the facts of the case, we find that the main object of the Society is to provide residential facilities through the house construction activities, through the institutions. To fulfil this aim, the assessee was to provide loan and advances to the institution and individuals against the immovable property and other securities in addition to the interest received from the Institutions and the individuals to whom the loan was advanced, the assessee was having income on the deposits with Bank, U.T.I. These deposits were made out of the surpl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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