TMI Blog2023 (6) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-clauses (i) to (vii) of clause (a), then the character of such income may not be lost, especially when the statute uses the expression attributable to and not any one of the two expressions, namely, derived from or directly attributable to . Interest credited by the State Bank of Hyderabad to the account of the assessee on the credit balances does not lose its character as the income derived from the activities of the assessee covered by 80P(2)(a)(i) - Thus disallowed interest in this matter, as a matter of fact is eligible for deduction under section 80P(2)(a)(i) - Decided in favour of assessee. - ITA No. 311/Hyd/2023 - - - Dated:- 22-6-2023 - Shri K.Narasimha Chary, Judicial Member For the Assessee : Smt. S. Sandhya, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any interest income arising from deposit/investment of funds in banks is in the nature of income from other sources, and cannot be categorized as income from the profits and gains of business of the assessee. He thereby brought the said interest income to tax. Learned Assessing Officer referred to the decision in M/s. Bangalore Club vs. CIT in Civil Appeal No. 124 of 2007, dated 14/01/2013. 5. In appeal, learned CIT(A) concurred with the observations of the learned Assessing Officer to the effect that under section 80P(2)(a)(i) of the Act the total amount of profit and gains of business of a co-operative society engaged in the business of providing credit facilities to its Members shall be deducted from the gross total income of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17) [396 ITR 371] (AP), while dealing with the allowability of the interest derived by co-operative societies from out of the investments if any, made. The Hon ble court observed that, the case before the Supreme Court in Totgar's Co-operative Sale Society Ltd.'s case (supra) was in respect of a co-operative credit society, which was also marketing the agricultural produce of its members. As seen from the facts disclosed in the decision of the Karnataka High Court in Totgars, from out of which the decision of the Supreme Court arose, the assessee was carrying on the business of marketing agricultural produce of the members of the society. It is also found from paragraph-3 of the decision of the Karnataka High Court in Totgar's ..... X X X X Extracts X X X X X X X X Extracts X X X X
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