2022 (11) TMI 1550

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..... . (2) That the learned CIT(A) erred in law and on facts in confirming the addition made by the Assessing officer on account of interest income earned from deposits or saving account with Bank of Maharashtra and IDBI Bank amounting to Rs. 15,64,077/- and not allowing the deduction claimed u/s 80P(2). On the facts and circumstances of the case, the action of learned authorities is highly unjustified and not in accordance with law. (3) That the learned Assessing Officer erred in law and on facts in treating interest income of total Rs.15,64,077/- earned on deposits and saving accounts with Bank of Maharashtra and IDBI Bank as Income from Other Sources instead of treating it as income from business of providing credit facility and the lea .....

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..... 1961 ('the Act'). Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-3, Amravati ('the Assessing Officer') vide order dated 14.12.2015 at a total income of Rs.15,64,080/-. The disparity between the returned income and assessed income is on account of addition of interest earned on deposits with Bank of Maharashtra and IDBI Bank and Assessing Officer had denied the claim of exemption u/s 80P of the Act. The brief facts of the case is as under : During the course of assessment proceedings, the Assessing Officer found that the appellant earned interest income on fixed deposits with Bank of Maharashtra and IDBI Bank. It is stated that the fixed deposits were made out of business income lying idle. T .....

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..... IT vs. Punjab State Cooperative Federation of Housing Building Societies Ltd. 11 taxmann.com 448, the Hon'ble Gujarat High Court in the case of State Bank of India Vs. CIT 389 ITR 578 (Guj.), the Hon'ble Delhi High Court in the case of Mantola Co-operative Thrift & Credit Society Ltd. Vs. CIT 50 taxmann.com 278, the Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Punjab State Cooperative Agricultural Development Bank Ltd. 389 ITR 68 and the Hon'ble Kolkata High Court in the case of CIT Vs. Southern Eastern Employees Cooperative Credit Society Ltd. 390 ITR 524 took a view that the income arising on the surplus invested in short term deposits and securities cannot be attributed to the activities of the society and, therefore, not e .....

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