9911796707
TMI Blog2015 (7) TMI 1448X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble ITAT Lucknow in Appeal no. 124/LUK/07, 125/LUK/07, 127/LUK/07 as the Hon'ble Supreme Court in the case of Totgars Cooperative Sale Society Limited 322-ITR-283 (SC) 2010 has held that the addition was made as interest from Post Office and Nationalized Bank (other than Cooperative Bank) and the assessee failed to prove with supporting documentary evidence that interest income was exclusively derived from deposits in the Saving Bank Account and not from Long-term Deposits made for long term investments out of surplus funds to earn interest income which does not qualify for deduction under section 80 P (2)(d) of the I.T. Act, 1961 and therefore, the addition was rightly made by the Assessing Officer as the facts of the instant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is not entitled to deduction u/s 80P in respect of such interest income. As per the facts of that case, in all the years out of 10 years involved in that case, the assessee was having almost equal amount of other liabilities in addition to capital and other own funds. It is noted by Hon'ble Apex Court that the assessee markets the agricultural produce to its members and had retained the sale proceeds in many cases and this retention amount payable to members from whom the produce was bought was invested in short term deposit/securities and such retention amount was liability of the assessee society and it was so shown in the balance sheet and therefore, to that extent, such interest income cannot be said to be attributable eith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its own contribution as the same would be allowable deduction as per provisions of section 36(1)(vi) /43B."
7. Learned D. R. of the Revenue supported the assessment order whereas learned A. R. of the assessee supported the order of learned CIT(A).
8. We have considered the rival submissions. We find that it is held by learned CIT(A) that even the enhanced income by way of making addition u/s 36(1)(va) & 2(24)(x) will be eligible for deduction u/s 80P of the Act. We do not find any infirmity in the order of CIT(A) on this issue. Accordingly, this ground is also rejected.
9. In the result, the appeal of the Revenue stands dismissed.
(Order was pronounced in the open court on the date mentioned on the caption page) X X X X Extracts X X X X X X X X Extracts X X X X
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