TMI Blog2022 (5) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... d) in respect of gross interest received from co-operative bank without adjusting interest paid to said bank. In the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] the Karnataka High Court has held that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. Thus in our view, interest earned by the assessee on surplus held with Banaskantha Dist. Co-operative Bank would be eligible for deduction under Sec.80P(2)(d) - Decided in favour of assessee. - ITA No. 125/Ahd/2021 - - - Dated:- 19-5-2022 - Shri Waseem Ahmed, Accountant Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on principle as ordinarily a litigant does not stand to benefit by lodging an appeal late. Further refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties. The Apex Court further held that when substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay. It must be grasped that judiciary is respected not on account of its power to legalize inj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.1 The Ld. Assessing Officer held that the interest income of Rs.14,07,035/- (12,87,267 + 1,19,767/-) received by the assessee from Banaskantha Dist. Co-operative Bank and claimed deduction u/s 80P(2)(a)(i) of the Act does not qualify for deduction u/s 80P of the Act. The AO also relied upon the judgment of Hon'ble Karnataka High Court in the case of Pr.CIT, Hubballi Vs. Tatagars Co-Op. (2017) 83 taxman.com 140 which has held that only interest and dividend earned by a co-operative society out of investment with any other Primary agricultural Credit societies with their limited work of providing credit facility to its members will be governed by the ambit and scope of deduction u/s 80P(2)(d). Therefore, interest earned on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions in respect of interest earned from deposits kept with a cooperative bank: Therefore, it is only the interest derived from the credit provided to its members which is deductible under section 80P(2)(a)(i) of the Act and the interest derived by depositing surplus funds with the State Bank of India not being attributable to the business carried on by the appellant, cannot be deducted under section 80P(2)(a) (i) of the Act. If the appellant wants to avail of the benefit of deduction of such interest income, it is always open for it to deposit the surplus funds with a co-operative bank and avail of deduction under section 80P(2)(d) of the Act. 6.1 In the case of Surat Vankar Sahakari Sangh Ltd. v Assistant Commissioner of Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
