TMI Blog2017 (12) TMI 1838X X X X Extracts X X X X X X X X Extracts X X X X ..... ved form Allahabad bank, Bank of Baroda and Baroda center Co-op. Bank respectively. From the details, it can be seen that the receipts of interest has been received from other than Co-operative organization i.e. from nationalized banks on FDRs, which is nothing but interest earned on surplus funds invested in bank deposits i.e. FDRs.. We direct the Assessing Officer to verify the assessee s claims of pro rata expenses by examination the record to be shown for verification by the assessee and accordingly, netting of to be allowed. Appeal of assessee allowed. - I.T.A. No.2814/Ahd/2016 - - - Dated:- 22-12-2017 - SHRI MAHAVIR PRASAD, JUDICIAL MEMBER SHRI AMARJIT SINGH, ACCOUNTANT MEMBER) Appellant by : Shri Bandish Soparkar, A.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the society has filed. As per details, interest amount of Rs.1,20,422/- Rs.39,209/- Rs. 471/- was received form Allahabad bank, Bank of Baroda 8s Baroda center Co-op. Bank respectively. From the details, it can be seen that the receipts of interest of Rs.1,20,422/- Rs. 39,209/-(totaling to Rs. 1,59,671/-) obtain action amount as an P L it is nearly Rs,1,50,000/- has been received from other than Cooperative organization i.e. from nationalized banks on FDRs. As calculated above, the assessee has disclosed the earning of interest from non co-operative organization i.e. nationalized banks to the tune of Rs.l,59,67l/- not offered for taxation. As disclosed above, the interest income of Rs.1,59,671/- is earned from non cooperative organi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be covered for exemption u/s.80P or any other sub section of 80P of the Act, It cannot be treated as business of banking or providing credit facilities to the members of the society. As held in the case of the Totgars co-op. Sales Society Ltd., Vs. ITO(SC) 322 ITR 283; 35 DTR 25, surplus funds invested in bank deposits Govt. securities interest is Income from other Sources to be assessed u/s.56 not eligible for deduction u/s.80P(2)(i) of the Act as it is not related to the business of providing credit facility to its members. Considering all the above facts, it is clear that the assessee is not liable for deduction u/s.80P(2)(a)(i)/80P(2)(d) of the interest income of the Act on the interest income of Rs.l,59,671/- as worked out i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im pro rata expenses for earning interest income of Rs.8,55,854/- assessee's claim of pro rata expenses of Rs.5,77,423/- against the interest income of Rs.8,55,854/- after due verification by the learned Assessing Officer. We, therefore, direct the Assessing Officer to verify assessee's claim of pro rata expenses by examining the record to be shown for verification by the assessee. Needless to mention proper opportunity of being heard is to be given to the assessee. We order accordingly. The appeal of the assessee is partly allowed for statistical purposes. 6. Respectfully following the aforesaid order, we direct the Assessing Officer to verify the assessee s claims of pro rata expenses by examination the record to be shown f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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