TMI Blog2020 (2) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... y following this Tribunal order, in the present case also, we restore the matter back to the file of AO for fresh decision - Appeals of the assessee are allowed for statistical purposes. - ITA Nos. 3389 and 3390/Bang/2019 - - - Dated:- 7-2-2020 - SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER For the Assessee : Shri. Ramesh, CA For the Revenue : Shri. Sunil Kumar Agarwal, Addl. CIT (DR)(ITAT), Bengaluru ORDER Per A.K. Garodia, Accountant Member Both these appeals are filed by the assessee which are directed against two separate orders of learned CIT(A)-7, Bengaluru both dated 23.10.2018, for the Assessment Years 2012-13 and 2013-14. Both these appeals were heard together and are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll, we reproduce para 5 of the Tribunal order cited by learned AR of the assessee having been rendered in the case of M/s. The Jayanagar Co-operative Society Ltd., Vs. ITO (supra). This para reads as under:- 5. While learned AR relied on the decision of the Hon ble Karnataka High Court in the case of Tumukur Merchants Souharda Credit Co-operative Ltd., 230 taxman 309 (Karn), the 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.). We have carefully gone through the said judgment. The facts of the case before the Hon ble Karnataka High Court was that the Hon ble Court was considering a case relating to Assessment Years 2007-08 to 2011-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not applicable to such interest income. It 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 examining the facts in the light of these judgment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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