Interest earned by Co-operative society on surplus funds deposited in FD wasn't eligible for sec. 80P relief

 

November 28, 2014[2014] 50 taxmann.com 278 (Delhi)

IT : Where assessee, a co-operative society, engaged in providing credit facilities to its members, deposited surplus funds in fixed deposits and earned interest thereon, said interest would be assessable as 'income from other sources' and, thus, not eligible for deduction under section 80P(2)(a)(i)

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[2014] 50 taxmann.com 278 (Delhi)

HIGH COURT OF DELHI

Mantola Co-Operative Thrift & Credit Society Ltd.

v.

Commissioner of Income-tax*

SANJIV KHANNA AND V. Kameswar Rao, JJ.

IT Appeal No. 569 of 2013†

AUGUST  27, 2014 

Section 56, read with section 80P, of the Income-tax Act, 1961 - Income from other sources - Chargeable as (Credit society) - Assessment year 2008-09 - Whether where assessee, a co-operative society, engaged in providing credit facilities to its members, deposited surplus funds in fixed deposits and earned interest thereon, said interest would be assessable as 'income from other sources' and, thus, not eligible for deduction under section 80P(2)(a)(i) - Held, yes [In favour of revenue]

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Posted by: Deepak Gadgil <gadgildeepak2000@yahoo.com>