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TMI Blog2022 (9) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... ;ble Tribunal 'A' Bench Pune in ITA No. 486/Pun/2012 for A. Y. 2012-13 which decision was rendered in favour of the assessee now the issue is a 'covered' in favour of the assessee. Following the Hon'ble Tribunal order (supra) the deduction of 82,78,245/- be allowed to the appellant. 2) On the facts and circumstances of the case and in law the Ld. CIT(A) was not justified to uphold order of the A. O. making addition of Interest of Rs. 82,78,245/- was only business income from interest earned on FD's with Bank. The logic applied by A. O. was not according to law. 3) On the facts and circumstances of the case and in law the small delay has occurred in filing of this appeal but the payment of appeal fees was made on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e further held that the FDs of only Rs.57 lakhs were made for the purpose of obtaining the bank guarantees, the balance FDRs of Rs.10 crores are made out of surplus income, should be assessed only under the head "income from other sources". 5. Being aggrieved by the decision of the ld. CIT(A), the appellant society is in appeal before us. 6. When the matter was called on, none appeared on behalf of the appellant-assessee despite due service of notice of hearing. 7. At the outset, there is a delay in filing the present appeal by 21 days. The appellant filed an affidavit stating that the delay in filing the present appeal had occurred on account of serious illness of the Manager of the appellant society, who was looking after the income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act,1960 with the objective of accepting deposits and lending money to its members. The money which is not immediately required for the purpose of lending to the members is deposited with Bank of Baroda in the form of Fixed Deposit. The question is whether the interest so earned qualifies for exemption u/s. 80P(2)(a)(i) of the Act. The AO as well as the CIT(A) were of the opinion that the interest earned from third parties or non-members does not quality for exemption u/s.80P. It is an admitted position that the interest so earned should be taxed as 'income from other sources' There is a cleavage of judicial opinion among several High Courts on the issue of eligibility of this kind of income for exemption u/s. 80P(2)(a)(i) of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the judgment of Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). Respectfully following the decision of the Coordinate Bench, we hold that the interest income earned on the investment of surplus money with banks is also eligible for exemption u/s.80P(2)(a)(i) of the Act. Thus, the grounds of appeal No. 1 & 2 stands allowed." 11. In the present case, the material on record does not indicate the source of funds for making FDs in Syndicate Bank. Therefore, we are of the considered opinion that the matter requires to be remanded to the file of the Assessing Officer to decide the issue of eligibility of the interest income for exemption under the provisions of section 80P of the Act i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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