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TMI Blog2020 (6) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... ders have been passed for the A.Ys 2011-12 and 2015-16 under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short 'the Act') consequent to the reopening of assessment of these two years by issuing notice under Section 148 of the Act. The assessment for AY 2016-17 has been taken up for scrutiny. He submitted that the issues contested in all the three years are identical in nature. He submitted that the assessee is challenging the validity of reopening of assessments in AY 2011-12 and 2015-16 and also contending the additions made in all the three years. The learned Authorised Representative submitted that the additions made by the Assessing Officer are now covered in favour of the assessee by the following decisions:- i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "co-operative society". Accordingly he held that the assessee is not eligible to claim deduction u/s 80P at all. He also observed that the assessee is also having nominal Members/associate members. Further, the business of E-Stamping and Mutual Funds activity carried on by the assessee are open to public and not restricted to its Members. The AO held that the same should not have been done. Hence, on cumulative considerations, the AO rejected the claim for deduction u/s 80P of the Act. 5. The Assessing Officer also held that the interest earned by co-operative society on surplus funds invested in Short Term Deposits with banks and Govt. Securities are not eligible for deduction under Section 80P of the Act. In this regard, the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authorised Representative submitted that the Hon'ble Karnataka High Court has since decided the said issue in pursuant to remand of the said issue by Hon'ble Supreme Court in the case reported in (2015) 58 Taxman.com 35. It has been held that the jurisdictional High Court that the assessee should be allowed proportionate expenditure incurred in earning the interest income, while computing the taxable interest income under Section 56 of the Act. Accordingly, the learned Authorised Representative submitted that the grounds on which the Assessing Officer has disallowed under Section 80P of the Act in these years have since been reversed by Hon'ble High Court and Hon'ble Supreme Court in the above said cases. When the bench pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sources has also been decided by the Hon'ble Karnataka High Court in the case of Totgar Co-operative Sale Society Ltd. (supra). 10. In view of above said legal developments, we feel it appropriate to restore all the issues to the file of the Assessing Officer for examining them afresh in the light of various decisions rendered by Hon'ble High Court and Hon'ble Supreme Court. Accordingly, we set aside the orders passed by the CIT (Appeals) in all the three years under consideration and restore them to the file of Assessing Officer for examining them afresh. 11. Since we have restored the issues urged on merits to the file of Assessing Officer, we do not find it necessary to adjudicate legal issue of validity of reopening of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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