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1 - 8 of 8 (0.27 seconds)Income-Tax Officer,, vs Swa Ashokrao Bankar Nagari Sahakari ... on 4 May, 2017
9. On the perusal of record, we find that the issue in the present appeal is
against the claim of deduction under section 80P(2)(a)(i) of the Act on interest
income received from fixed deposits with Bank of India, HDFC Bank, State
Bank of India, ICICI Bank and Bank of Baroda. The said issue is squarely
covered by the order of the Tribunal in ITO Vs. Niphad Nagari Sahakari
Patsanstha Ltd. (supra) wherein the Tribunal had held that the assessee is
entitled to claim deduction under section 80P(2)(a)(i) of the Act on the interest
income received by it on bank fixed deposits. The relevant findings of the
Tribunal are reproduced at page 9 of the appellate order but are not being
reproduced for the sake of brevity.
M/S The Totgars Co-Operative Sale ... vs The Income Tax Officer on 30 September, 2008
We find the Hon'ble High Court of
Karnataka after considering the decision of Hon'ble Supreme Court in the case
of Totgar's Cooperative Sale Society Ltd. (Supra) held that the interest earned
by such cooperative societies on short term deposits with scheduled banks is
eligible for deduction u/s.80P(2)(a)(i). The relevant observation of the Hon'ble
High Court from para 6 onwards read as under :
Mantola Co-Operative Thrift And Credit ... vs Commissioner Of Income Tax 21 on 17 July, 2017
11. No doubt, a contrary decision to this effect was also cited by the Ld.
Departmental Representative where the Hon'ble Delhi High Court in the case of
Mantola Cooperative Thrift & Credit Society Ltd. (Supra) has held that where
the assessee cooperative society was engaged in providing credit facilities to
its members earns interest income on surplus funds deposited as fixed
deposits, such interest income would be assessable as "income from other
sources" and thus not eligible for deduction u/s.80P(2)(a)(i). However, it is also
the settled proposition of law that when two views are possible, the view which
is in favour of the assessee has to be followed.
Commissioner Of Income-Tax Andhra ... vs Andhra Pradesh State Road Transport ... on 7 March, 1986
In fact similar view is taken by the Andhra
Pradesh High Court in the case of CIT v. Andhra Pradesh State co-
operative Bank Ltd., [2011] 200 Taxman 220/12 taxmann.com 66. In
that view of the matter, the order passed by the appellate authorities
denying the benefit of deduction of the aforesaid amount is
unsustainable in law. Accordingly it is hereby set aside. The substantial
question of law is answered in favour of the assessee and against the
revenue. Hence, we pass the following order:"
Commr. Of Income Tax. vs M/S Balaji Vegetable Products (P) Ltd. on 16 October, 2015
Since in the instant case, two
divergent decisions were cited before us and no decision of the Hon'ble
jurisdictional High Court is available, therefore, following the decision of the
Hon'ble Supreme Court in the case of CIT Vs. Vegetable products reported in
88 ITR 192 we hold that the view in favour of the assessee, i.e. the decision of
the Hon'ble Karnataka High Court has to be followed. Accordingly, we hold that
the interest income earned by the assessee on short term deposits kept with
banks has to be allowed as deduction u/s.80P(2)(a)(i) of the I.T. Act. The order
of the CIT(A) is accordingly set aside and the grounds raised by the assessee
are allowed."
Section 80P in The Income Tax Act, 1961 [Entire Act]
M/S Tumkur Merchants Souharda Credit ... vs Assessee on 19 February, 2014
10. It is the case of the assessee that in view of the decision of Hon'ble
Karnataka High Court in the case of Tumkur Merchants Souhards Credit
Cooperative Ltd. (Supra) the interest earned from such short term deposits with
bank is entitled to deduction u/s.80P(2)(a)(i).
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