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TMI Blog2020 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee in these appeals are similar and identical. For sake of convenience, we reproduce grounds in ITA No. 2226/B/2017: 2. The assessee has raised the following grounds:- "1. That the impugned order is opposed to facts and law in so far as it is prejudicial to the interests of the Appellant. 2. That the ld. CIT(A) erred in confirming the order of AO and denying the deduction under section 80P(2), and in doing so: (a) He failed to appreciate that the business of the Appellant consists entirely of extending credit facilities to its members as given under section 80P(2). (b) He failed to appreciate that co-operative society defined under section 2(19) of the Income Tax Act also includes entities registered under "Karnataka Souharda Sah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact whether it is earned or received from a scheduled bank or cooperative bank. Aggrieved by the order of Ld. AO assessee preferred appeal before Ld. CIT (A). 3. Ld. CIT(A) confirmed this view taken by Ld. AO. 3.2. It was submitted by Ld. AR of assessee that the assessee has earned some interest income from bank which has been assessed by the AO as income from other sources and assessee's claim for deduction u/s. 80P of the IT Act was disallowed by the AO and it is confirmed by CIT(A). He submitted that basis of decision of authorities below is by following decision of Hon'ble Karnataka High Court rendered in the case of PCIT and Another Vs. Totagtarts Co - Opertaive Sale Society as reported in 395 ITR 611 (Karn). He also submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Tumkur Merchants Souharda Credit Co - Operative Ltd., vs. ITO as reported in 230 Taxmann 309 is applicable. 6. Ld. Sr. DR, on the contrary, strongly opposed granting of deduction under section 80P (2) of the Act. Ld. DR submitted that, assessee relied on judgment of the Hon'ble Karnataka High Court dated 16.01.2020 (supra), however, Hon'ble Court quoted in the last paragraph as; "It is needless to mention that the other provisions of section 80P of 1961 Act and their effect on the claim of the petitioner-like-societies have been left to be addressed by the concerned authorities." 7. Ld. DR submitted that keeping in view above observation of Hon'ble Karnataka High Court, the issue may kindly be set aside and restored back t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sale Society (supra), the Hon'ble Karnataka High Court decided the issue against assessee. But in the case of Tumkur Merchants Souharda Credit Co - Operative Ltd., vs. ITO (supra), it was found that the money deposited in bank by assessee was out of its own funds and not out of liability and therefore, the issue in that case was decided in favour of the assessee. 10. As facts in present case are not readily available on record and there is no finding of authorities below on this factual aspect regarding the source of funds deposited on bank on which interest income was earned, the issue should go back to the file of CIT(A) for fresh decision. The Bench also proposed that regarding the applicability of Hon'ble Apex Court rendered in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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