9911796707
TMI Blog2023 (12) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT[A] is not justified in holding that the order giving effect to the appellate order is not an appealable order before the CIT[A] without appreciating that the order giving effect to the appellate order of the learned CIT[A] modified the earlier order passed u/s. 143[3] of the Act and therefore, the same was appealable u/s. 246A of the Act under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] ought to have appreciated that the cost of funds allowed at 15% of the interest income was erroneous and without any basis or rationale especially when the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nging to tax the interest income as 'Income from Other Sources', rejecting the assessee's claim as business income. 4. Aggrieved by the Assessment Order, assessee filed appeal before the CIT(A). The CIT(A), vide order dated 19.07.2017, sustained the addition on account of interest earned on investments with Co-operative Banks and other scheduled Banks. However, the CIT(A) directed the AO to allow the cost of funds. Pursuant to the CIT(A)'s order, the AO directed the assessee to furnish the cost of funds incurred for earning the interest on investments. Assessee provided the calculations for the cost of funds. The AO held vide order dated 11.06.2018 (order giving effect to CIT(A)'s order) that cost of funds calculated by the assessee is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction under section 80P(2)(a)(i) of the Act. Therefore, it was submitted that the interest paid on deposit made by members of the assessee cannot be allowed as cost of funds. The learned Standing Counsel submitted that the calculation on ad-hoc basis by the AO and confirmed by the CIT(A) is justified on the facts of the case and the same is not to be interfered with. 8. I have heard the rival submissions and perused the material on record. The solitary issue for my consideration is with respect to deduction to be allowed under section 57 of the Act while computing interest income that is liable to be taxed under the head 'Income from Other Sources'. Assessee is a co-operative society primarily engaged in providing credit facilities to it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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