TMI Blog2020 (6) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... plus funds not immediately required in short term deposits and securities by a Co-operative Society providing credit facilities to members or marketing agricultural produce to members is not business income but income from other sources and the society is not entitled to special deduction. 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. ( [ 2015 (2) TMI 995 - KARNATAKA HIGH COURT] still holds good. Hence, on this aspect, the issue should be restored b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and qualifies for full deduction u,/s. 80P(2)(a)(i) of the Act. 2. It is submitted that the citation of Totgars Co-operative Sale Society Ltd. relied upon by the Respondent as well as CIT (A) is not applicable to the appellant's case since Totgars Co-op. Sale Society was engaged in numerous activities unlike the appellant. 3. The appellant submits that the impugned orders passed by the authorities below are illegal and are liable to be set aside in view of the judgement of the the Hon'ble High Court of Karnataka in ITA 29/2015 - M/S. Guttigedarara Credit Co-op. Society Ltd. Mysore Vs. ITO, Ward 2(2), Mysore and ITA 307/2014 - M/S. Tumkur Merchants Souharda Credit Co-op. Ltd Vs. ITO, Ward-1, Turnkur and also the recent j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led banks under the provisions of Section 80P(2)(d) of ₹ 1,36,433 and assessed the total income of ₹ 1,36,430 and passed order under Section 143(3) of the Act dt.18.11.2016. Aggrieved by the A.O s order, the assessee has filed an appeal with the CIT(Appeals). Whereas the CIT(Appeals) has confirmed the addition of interest from scheduled banks and granted relief in respect of other additions and partly allowed the appeal. Aggrieved by the order of CIT(Appeals), the assessee has filed an appeal with the Tribunal. 4. At the time of hearing, the learned Authorised Representative submitted that the CIT(Appeals) has erred in confirming the addition of interest from scheduled banks though the co-operative society is engaged in provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est income for all the Assessment Years was identical. The bone of contention of the Assessee in AY 2007-08 to 2011-12 was that the deduction under Section 80P(2) of the Act is claimed by the respondent assessee under Section 80P(2)(d) of the Act and not under Section 80P(2)(a) of the Act which was the claim in AY 1991-92 to 1999-2000. The reason given by the Assessee was that in AY 2007-08 to 2011-12 investments and deposits after the Supreme Court's decision against the assessee Totgar's Co-operative Sale Society Ltd. (supra), were shifted from Schedule Banks to Cooperative Bank. U/s.80P(2)(d) of the Act, income by way of interest or dividends derived by a Co-operative Society from its investments with any other Cooperative Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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