JANJIVHALA SAHAKARI PATSANSTHA MARYADIT,MUMBAI vs. ITO 15(2)(1), MUMBAI

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ITA 332/MUM/2015Status: DisposedITAT Mumbai30 June 2016AY 2010-112 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found a relevant precedent from a previous ITAT decision on a similar issue. Both parties agreed to remand the matter for fresh adjudication.

What were the facts?

The assessee's appeal concerned the correct head of income for taxing interest receipts earned from banks and societies. The CIT(A) had confirmed taxation under 'income from other sources'.

What were the issues?

The key issue was the proper classification of interest income for tax purposes. The tribunal considered a prior ITAT ruling on the matter.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SHRI D. KARUNAKARA RAO

For Appellant: Ms. Priyanka Jadhav
For Respondent: Shri Ajay, DR
Hearing: 30.06.2016Pronounced: 30.06.2016

सुनवाई की तायीख / Date of Hearing : 30.06.2016 घोषणा की तायीख /Date of Pronouncement : 30.06.2016 आदेश / O R D E R

PER D. KARUNAKARA RAO, AM:

1.

This appeal filed by the assessee on 30.1.2015 is against the order of the CIT (A)-26, Mumbai dated 20.10.2014 for the assessment year 2010-2011.

2.

The only issue raised in this appeal relates to the proper head of income for taxing the interest receipts earned by the society from the banks / societies where the funds are parked either under the statutory obligation or otherwise. At the outset, Ld Counsel for the assessee submitted that the CIT (A) decided to confirm the taxability of interest receipts under the head income from other sources in view of the absence of precedent at the relevant point of time on this issue. In this regard, Ld Counsel for the assessee filed a copy of the order of the Tribunal in the case of M/s. Jaoli Taluka Sahakari vs. ITO in (AY 2010-2011), dated 10.8.2015 and submitted that the assessee will get relief if the ratio of the said decision of the Tribunal (SMC Bench) is examined and applied to the instance case.

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