TMI Blog2021 (12) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessed as business income. The assessee before the Tribunal also has not furnished the details of investments. Therefore, we are not in a position to examine whether the investments are made to maintain the statutory liquidity reserve. The assessee without furnishing the necessary details cannot expect the Tribunal to restore the issue to the A.O. for de novo consideration, especially when this case as its origin from the order of the CIT passed u/s 263 - As mentioned earlier, the assessee s prayer before the Income Tax Authorities as well as the ground raised before the Tribunal is only regarding non-granting of deduction u/s 80P(2)(d) and not u/s 80P(2)(a)(i) - the main contention of the assessee (without raising any ground before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Sri.G.S.Prashanth, CA For the Respondent : Smt.Priyadarshini Besaganni, JCIT-DR ORDER PER GEORGE GEORGE K, JM: This appeal at the instance of the assessee is directed against CIT(A) s order dated 28.06.2019. The relevant assessment year is 2014-2015. 2. The grounds raised read as follows: 1. In the facts and circumstances of the case, the learned CIT (Appeals), has failed to appreciate the facts and circumstances of the case that the appellant is an Cooperative housing society not carrying on the business of banking or credit facilities to its members and thus it entitled to claim deduction u/s 80P(2)(d). 2. In the facts and circumstances of the case, the learned CIT (Appeals) has erroneously applied the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Tatagars Co-operative Sale Society Ltd. v. ITO reported in 395 ITR 611 (Kar.). 4. Aggrieved, the assessee preferred an appeal to the first appellate authority. The CIT(A) confirmed the view taken by the Assessing Officer. 5. Aggrieved by the order of the CIT(A), the assessee has filed this appeal before the Tribunal. The learned Counsel for the assessee has filed two sets of paper book. The first set of paper book is comprising of 67 pages, enclosing therein the financial statement of the assessee, bye-laws, the notice issued u/s 263 of the I.T.Act and the original assessment completed on 31.05.2016. The second set of paper book has 79 pages, enclosing therein the judicial pronouncements relied on by the assessee. The learned AR s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lower authorities that investments are made with co-operative banks out of statutory compulsion, and therefore, interest income arising from such investments are to be assessed as business income. The assessee before the Tribunal also has not furnished the details of investments. Therefore, we are not in a position to examine whether the investments are made to maintain the statutory liquidity reserve. The assessee without furnishing the necessary details cannot expect the Tribunal to restore the issue to the A.O. for de novo consideration, especially when this case as its origin from the order of the CIT passed u/s 263 of the I.T.Act. As mentioned earlier, the assessee s prayer before the Income Tax Authorities as well as the ground raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2). Upon the pronouncement of the order by the Apex Court, in these appeals referred to supra, the income earned on the interest is declared as other income falling under Section 56 of the Income Tax Act. Then the next immediate question that follows is as to whether the entire fund i.e., in deposit with the Bank is taxable or the proportionate expenditure incurred by the appellant requires deduction. It is logical that when the Revenue is permitted to assess and recover taxes from assessee under Section 56 by treating the income earned by interest as income from other sources , the appellant shall be entitled for proportionate expenditure cost incurred in mobilizing the deposit placed in the Bank/s. What can be taxed is only the net in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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