TMI Blog2021 (3) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... iscussed above. Deduction claimed u/s. 80P(2)(d) in respect of interest income earned from fixed deposits kept with co-operative bank - HELD THAT:- We modify the order passed by Ld. CIT(A) and direct the A.O. to allow deduction of proportionate cost, administrative and other expenses from the interest income earned from bank deposits assessed under the head income from other sources . Applicability of TDS provisions on interest income paid to non-regular members - While considering the issue of deduction claimed u/s. 80P(2)(a)(i) of the Act, definition of the term member given in section 80P(2)(a)(i) of the Act has to be understood in the light of definition of that expression as contained in the concerned co-operative societie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellate proceedings, the Ld. CIT(A) noticed that the assessee has got 495 regular members, who have voting rights and 5,844 associate members, who do not have voting rights. By placing reliance on various case laws, the Ld. CIT(A) took the view that the deduction u/s. 80P(2)(a)(i) is available only in respect of income earned from interest on loans given to regular members. Accordingly, he directed the AO to allow deduction in respect of income earned on loans given to regular members only. 4. The Ld. CIT(A) also noticed that the assessee has earned interest income from deposits kept with banks, investments, savings banks etc. By placing reliance on the decision rendered by Hon Tale Karnataka High Court in the case of The Totagar Co- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Bank Ltd. (supra) and since the facts prevailing in the instant case needs to be examined afresh in the light of the principles enunciated by Hon Tale Supreme Court in the above said case, we are of the view that the issue of deduction u/s. 80P(2)(a)(i) of the Act requires fresh examination at the end of the A.O. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh as discussed above. 9. The next issue relates to rejection of deduction claimed u/s. 80P(2)(d) of the Act in respect of interest income earned from fixed deposits kept with co-operative bank. We notice that the Hon Tale High Court of Karnataka has examined this issue in the case of Totgars ..... X X X X Extracts X X X X X X X X Extracts X X X X
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