TMI Blog2015 (10) TMI 2833X X X X Extracts X X X X X X X X Extracts X X X X ..... e from other sources, in view of the ratio laid down by the Hon ble Supreme Court in Totgars Co-Op. Sale Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] In view of the ratio laid down by the Hon ble Supreme Court in Totgars Co-Op. Sale Society Ltd. Vs. ITO (supra), the interest income from surplus fund / short deposits with the bank was assessable as income from other sources, which in turn, is taxable under section 56 of the Act. The said income assessed under the head Income from other sources is not eligible for deduction under section 80P(2)(a)(i) of the Act. The plea of the assessee that it was required to keep the funds in specified securities with the banks does not entitle the assessee to claim it as expenditure since the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. The assessee has raised the following grounds of appeal:- 1. Learned CIT has erred in fact in law in confirming addition of Rs.3162825/- u/s 56 without appreciating the fact properly. 2. Learned CIT has erred in fact in law in confirming addition without considering the fact that the net profit of the society from banking activity is Rs.1067941/- as per profit loss account which is assessable as income from business if Rs 3162825/- which is interest income on deposit with Union Bank of India is to be taxed as income from other sources then there will be net loss of Rs.2094884/- society is entitled to claim to set off the business loss with income from o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the addition made by the Assessing Officer in holding that the bank interest received by the assessee of Rs.31,62,825/- was assessable in the hands of assessee under section 56 of the Act. The alternate plea raised by the assessee was that the net profit of the assessee society from banking activity was Rs.10,67,941/- as per Profit Loss Account, which was declared as income from business and in case sum of Rs.31,62,825/- being the interest income on deposit with Union Bank of India was to be taxed as income from other sources, then there would be net loss of Rs.20,94,884/- under the head Income from business , which the assessee is entitled to claim as set off with the income assessed as income from other sources. 5. Briefly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess being eligible for deduction under section 80P(2)(a)(i) of the Act. Accordingly, we uphold the order of CIT(A) in this regard. 7. Now, coming to the alternate plea raised by the assessee that as per the Profit Loss Account, the net positive income of the assessee is Rs.10,67,941/- and in case the income from interest of Rs.31,62,825/- is assessed as income from other sources, then there would be net loss of Rs.20,94,884/- assessable under the head Income from business . The next claim of the assessee in this regard was that the said business loss is to be adjusted against the income from other sources. Similar plea was raised before the CIT(A). However, in the absence of any details having been furnished by the assessee, the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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