TMI Blog2019 (10) TMI 1484X X X X Extracts X X X X X X X X Extracts X X X X ..... lending money to the members, as there were no takers. Therefore they had deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P(1) of the Act. The order passed by the appellate authorities denying the benefit of deduction of the aforesaid amount is unsustainable in law. - Decided in favour of assessee. - ITA No.738/M/2019 - - - Dated:- 22-10-2019 - SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER Appellant by : Shri Bhupendra Shah, A.R. Respondent by : Dr. Narender Kumar,D.R. ORDER Per Rajesh Kumar, Accountant Member: The present appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from SBI. 2. In the facts and circumstances of the case and in law, the learned Assessing Officer erred in disallowing deduction claimed of f 10,34,000/- u/s. 80P(2)(a)(i) of the Act by disregarding the fact that the commission was received from MSEB. 6. We observe that the identical issue was adjudicated by the Tribunal and operative part whereof as under: 5. We have heard learned DR and perused record. We noticed that an identical issue was considered by this Bench of the Tribunal in the case relied upon by Ld A.R and it was decided in favour of the assessee. For the sake of convenience, we extract below operative portion of the order :- 6. We noticed that the learned CIT(A) has taken support of the decision rendered by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The Hon'ble High Court upheld the said view by duly considering the decision rendered by Hon'ble Hon ble Supreme Court Court in the case of Totgars Cooperative Sale Society Ltd (supra). For the sake of convenience, I extract below the observations made by the Hon'ble Karnataka High Court: - 8, Therefore, 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 Cooperative Soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posit/security. Such an amount which was retained by the assessee - Society was a liability and it was shown in the balance sheet on the liability side. Therefore, to that extent, such interest income cannot be said to be attributable either to the activity mentioned in Section 80P(2)(a)(i)of the Act or under Section 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. 10. In the instant case, the amount which was invested in banks to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 9. We heard learned DR and perused the record. We noticed that an identical issue was considered by the Pune SMC Bench in the above cited case and the same has been decided in favour of the assessee with following observations :- 10. After hearing both the learned Counsel for assessee and the learned Departmental Representative for the Revenue, it transpires that similar issue of Electricity Commission arose before the Tribunal in the case of Banganga Nagri Sahakari Patsanstha Ltd. Vs. ITO (ITA No. 1522 1522/PN/2015dated 10-03-2016), wherein it was held as under:- 10. We have carefully considered the rival submissions, orders of the authorities below and case law cited. The short question before us is to determine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% of the gross income from such activities is not sustainable in law being devoid of objectivity. The Assessing Officer is accordingly directed to allow the expenses which are attributable to the running of Ambulance and determine the income from the aforesaid activity. The surplus if any, from this activity would be entitled to relief made residuary clause of section 80P(2)(c)(ii). We also notice that the Income from MSEB commission is held to be business activity as per decision cited by the assessee in the case of Ahmednagar District Co-operative Bank Ltd. (supra) and other decisions noted above. Accordingly, we hold that the assessee is entitled to relief under section SOP as per law..... . 11. The issue of Electricity Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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