TMI Blog2017 (5) TMI 1770X X X X Extracts X X X X X X X X Extracts X X X X ..... wed and orders of the authorities below are set aside. - Decided in favour of assessee. - I.T.A. No.867/Bang/2017 - - - Dated:- 31-5-2017 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER Appellant By : Shri S.N. Arvinda, Advoacate. Respondent By : Shri M.K. Biju, JCIT (DR) (ITAT)-3, Bengaluru. ORDER Per Shri Vijay Pal Rao, J.M. : This appeal by the assessee is directed against the order dt.8.2.2017 of Commissioner of Income Tax (Appeals), Gulbarga for the Assessment Year 2012-13. 2. The assessee has raised the following grounds : 1. On the facts in the circumstance of the case, the order of the CIT (Appeals) dt.8.2.2017 for the Assessment Year 2012-13, is not maintainable in law and liable to be set aside. 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow. 6. Having considered the rival submissions as well as material on record, at the outset it is noted that an identical issue has been considered by the coordinate bench of this Tribunal in the case of Shri S.M. Revana Siddaiah, CEO, Primary Agriculture Credit Co-operative Society Ltd. Others Vs. CIT (Appeals) (supra) in para 6 as under : 6. Having considered the rival submissions as well as the relevant material on record, it is noted that the decision of Hon'ble Supreme Court in the case of Totgar Sales Credit Society Ltd. Vs. ITO (supra) was discussed and considered by the Hon'ble jurisdictional High Court in the case of Tumkur Merchants Souharda Credit Co-operative Ltd. Vs. ITO (supra) and again in the case of M/s. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely: (a) in the case of co-operative society engaged in- (i) carrying on the business of banking or providing credit facilities to its members, or (ii) to (vii) ** ** ** the whole of the amount of profits and gains of business attributable to any one or more of such activities. 9. The word 'attributable' used in the said Section is of great importance. The Apex Court had an occasion to consider the meaning of the word 'attributable' as supposed to derive from its use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, the word attributable to is certainly wider in import than the expression derived from . Whenever the legislature wanted to give a restricted meaning, they have used the expression derived from . The expression attributable to being of wider import, the said expression is used by the legislature whenever they intended to gather receipts from sources other than the actual conduct of the business. A Co-operative Society which is carrying on the business of providing credit facilities to its members, earns profits and gains of business by providing credit facilities to its members. The interest income so derived or the capital, if not immediately required to be lent to the members, the society cannot keep the said amount idle. If t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 80P(2)(a)(iii) of the Act. Therefore in the facts of the said case, the Apex Court held the assessing officer was right in taxing the interest income indicated above under Section 56 of the Act. Further they made it clear that they are confining the said judgment to the facts of that case. Therefore it is clear, Supreme Court was not laying down any law. 12. In the instant case, the amount which was invested in banks to earn interest was not an amount due to any members. It was not the liability. It was not shown as liability in their account. In fact this amount which is in the nature of profits and gains, was not immediately required by the assessee for lending money to its members, as there were no takers. Therefore they had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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