Totgars Co-operative Sale Society Ltd. v. ITO

ITO, Bangalore vs. The Beml Employees Co-Op Society Ltd., Bangalore

In the result, appeal of the Revenue is dismissed

…in the bank. According to him, only the immediate source was required to be seen and not the remote source. Hon’ble Apex Court had clearly laid down this principle in the decision of IT.435/Bang/2016 Page - 4 Totgar’s Cooperative Sale Society Ltd., v. ITO [322 ITR 283]. Here in the case of assessee, only a very small amount was lent by it to its members. It was not similar to a society which was carrying on credit business. Therefore according to him, claim for deduction u/s.80P(2)(a)(i) of the Act, on such interest was unjustified. 06. Per contra, Ld. AR supported the order of lower authorities. 07. I hav…

ITO, Sirsi vs. M/S the Totagar'S Rural Co-Operative Agricultural Credit Society Ltd., Sirsi

Bench: Sri. Sunil Kumar Yadav

…f the High Court of Karnataka in M/s. Tumkur Merchants Souharda Credit Co– Operative Society in ITA No. 307 dated: 28.10.2014, and other decisions, ignoring the decision of the Hon’ble Supreme Court in the case of The Totgars Co–Operative Sale Society Ltd., [(322 ITR 283(SC)]. ITA 213 & 214/Bang/16 Page 3 of 13 3 Facts in brief relating to the impugned issues are that the assessee, a Rural Co–Operative Bank and its main activities are lending of money to its members and accepting deposits from them. It filed its return of Income for the A.Ys: 2010 – 11 & 2012 – 13 and claimed exemption u/s. 80P (2) (d) of the…

ITO, Sirsi vs. The Totagars Co-Operative Sale Society, Sirsi

In the result, the appeals of the revenue as well as the cross objections of the assessee are dismissed

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

…ative Credit Society Ltd. in IT No.617/Bang/2014. 3. Whether, on facts & circumstances of the case, the learned CIT(A) is correct in not following the judgment of the Hon’ble Supreme Court in the assessee’s own case in Civil Appeal No.162 of 2010 (reported in 322 ITR 283(SC)/2010 dated 08.02.2010. 4. Any other ground that may be taken during the appeal. 5. The appellant craves leave to add, alter, amend and delete any of the grounds of leave.” 3. The assessee is a co-operative credit society providing credit facilities to its members and markets the agricultural products of its members, runs a Kirana section, Ric…

M/S Tibetan Rabgayling Primary Agricultural Credit Co-Operative Society Ltd., Hunsur vs. ITO, Mysore

In the result, appeal of the assessee is partly allowed”

Bench: Smt Asha Vijayaraghavan & Shri Abraham P George

…1598 & 1596(B)/2014 providing credit facilities to its members. He held that such interest from deposits could only be considered as income from other sources. Relying on the decision of Hon’ble Apex Court in the case of Totagars Cooperative Sale Society in 322 ITR 283, the AO held that interest earned by assessee from surplus funds was assessable under the head income from other sources’and not eligible for claiming deduction u/s.80P(2)(a)(i) of the Act. 8. Aggrieved, assessee moved in appeal before the CIT (A). Argument of assessee was that the amounts which were placed in deposits were having direct nexus…

Rytha Seva Sahakara Bank Niyamitha, K.R. Nagar vs. ITO, Mysore

In the result, appeal of the assessee stands allowed for statistical purpose

Bench: Smt. Asha Vijayaraghavan

…ith other banks. AO was of the opinion that interest earned on such deposits could not be given benefit of deduction u/s.80P(2)(a)(i) of the Act in view of the judgment of Hon’ble Apex Court in the case of Totgar’s Cooperative Sale Society Ltd v. ITO [(2010) 322 ITR 283]. Assessee replied to this inter alia stating that what were deposited by it was only the statutory reserve that was required to be kept. However AO was of the opinion that of the total deposit of Rs.2,67,35,492/-, statutory reserves available to the assessee was only Rs.1,10,09,164/-. According to him interest earned on the balance deposits w…

M/S Farmers Agricultural Credit Co-Operative Society Ltd., Koppa vs. ITO, Mysore

In the result, the assessee’s appeal for assessment year

Bench: Smt. Asha Vijayaraghavan, Jm (Smc)

…ssee claimed deduction u/s 80P(2)(a)(i) of Rs.14,34,510/- towards providing credit facilities to its member and Rs.50,000/- u/s 80P(2)c) of the IT Act. The assessee submitted before the AO that in the case of M/s Totgar’s Co-Operative Sale Society Ltd Vs ITO 322 ITR 283(SC), the assessee was in the business of marketing agricultural produce of its members and earned income from huge bank deposits made out of its sales. This interest was claimed as exempt u/s 80P which was denied by the Court. However, in the case of assessee, the assessee is primarily agricultural credit society mainly in the business of provi…

M/S Bangalore Commercial Transport Credit Co-Operative Society Ltd., Bangalore vs. ITO, Bangalore

In the result, appeal of the assessee stands allowed

Bench: Shri. N. V. Vasudevan & Shri. Abraham P. George

…ITA.920/Bang/2014 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'C', BANGALORE BEFORE SHRI. N. V. VASUDEVAN, JUDICIAL MEMBER AND SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T.A No.920/Bang/2014 (Assessment Year : 2010-11) M/s. Bangalore Commercial Transport Credit Cooperative Society Ltd, No.2,1st cross, Chikkanna Garden, Chamarajpet, Bangalore 560 018 ..Appellant PAN : AAAAB3044Q v. Income-tax Officer, Ward – 3(3), Bangalore ..Respondent Assessee by : Shri. S. Ranganath, CA Revenue by : Shri. Sunil Kumar Agarwala, JCIT Heard on : 19.08.2015 Pronounced on : 26 .08.2015 O R D E R PER ABRAHAM P.…

Syndicate Rythara Sahakara Bank Ltd., Koppa vs. ITO, Mysore

…tax under the head ‘Income from Other Sources’ and denied the assessee's claim for deduction under Section 80P(2)(a)(i) of the Act. In this regard, the Assessing Officer placed reliance on the decision of the Hon'ble Apex Court in Totagars Co-op Sales Society 322 ITR 283 (SC). The Assessing Officer allowed NIL deduction under Section 80P(2) of the Act as the assessee's business income assessed by him was a loss. In this manner, the total income of the assessee was determined at Rs.18,48,200 after setting of losses under the head ‘Business’. 2.2 Aggrieved by the order of assessment for Assessment Year 2010-11 dt.5…

M/S Saptharshi Souhardha Patina Sahakara Niyamitha, Mysore vs. ITO, Mysore

In the result, the assessee's appeals for both Assessment Years 2009-10 and 2010-11

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

…s.5,95,037 earned by the appellant form the funds invested in banks is not allowable as a deduction under Section 80P(2)(a)(i) of the Act on the basis of the decision of the Hon'ble Supreme Court in the case of Totagar’s Co-operative Sale Society Ltd. V. ITO (322 ITR 283) (SC) is applicable to the facts of telecommunication expenses appellant’s case without appreciating that the facts of the said case are distinguishable from the facts of the appellant’s case. 3. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and j…

M/S Bangalore Credit Co-Operative Society Ltd., Bangalore vs. DCIT, Bangalore

In the result, the appeal filed by the assessee is allowed in above

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

…e has He has further submitted that in the case of Merchants Souharda Credit Co-operative Ltd Vs ITO, (Supra), the Hon’ble High Court has distinguished the judgment of the Hon’ble Supreme Court in case of Totgars Co-operative Sale, Society Ltd Vs ITO(2010) 322 ITR 283 by noting the fact that the interest income derived by the society on the short term deposit of the income or capital not immediately required to be lend to the members. Further, the society in the said case, shown the said interest income on the short term deposit as a liability in the balance sheet payable to the members and therefore, it was…

ITO, Bangalore vs. M/S Supraja Souharda Credit Co-Op Ltd

Bench: Shri N.V. Vasudevan & Shri.Jason P. Boazassessment Year :2009-10

…the assessee on deposits with banks or ITA No.1465 & 1575/Bang/2012 Page 3 of 6 any Government securities of Rs.12,47,648. The CIT(A) held that this amount was taxable in view of the decision of the Hon’ble Supreme Court in Totgars Co-operative Sale Society, 322 ITR 283 (SC). With regard to the remaining sum of Rs.27,59,755, the CIT(A) held that the same was income earned by the assessee in carrying on the business of providing credit facilities to its members and was eligible for deduction u/s. 80P(2)(a)(i) of the Act. In so far as this factum is concerned, the CIT(A) held that assessee was a co-operative soci…

M/S Supraja Souharda Credit Co-Op Ltd., Bangalore vs. ITO, Bangalore

Bench: Shri N.V. Vasudevan & Shri.Jason P. Boazassessment Year :2009-10

…the assessee on deposits with banks or ITA No.1465 & 1575/Bang/2012 Page 3 of 6 any Government securities of Rs.12,47,648. The CIT(A) held that this amount was taxable in view of the decision of the Hon’ble Supreme Court in Totgars Co-operative Sale Society, 322 ITR 283 (SC). With regard to the remaining sum of Rs.27,59,755, the CIT(A) held that the same was income earned by the assessee in carrying on the business of providing credit facilities to its members and was eligible for deduction u/s. 80P(2)(a)(i) of the Act. In so far as this factum is concerned, the CIT(A) held that assessee was a co-operative soci…

M/S Shri Siddasiri Pattin Sauharda Sahakari Niyamit, Bijapur vs. ACIT, Bijapur

In the result, appeal of the assessee is allowed

Bench: Shri N.V.Vasudevan & Shri Abraham P George

…ources”. 2. When the case came up before us, learned counsel for the assessee submitted that the lower authorities erred in applying the 2 ITA No.437(B)/14 judgments of the Hon’ble Apex Court in the case of Totagar’s Co- operative Sales Society Ltd. Vs CIT 322 ITR 283. According to the learned AR, assessee was in the business of providing credits to its members and therefore, interest arising to it on deposits with bank was attributable to such credit business. Learned AR further submitted that the amounts which were held in deposits with bank were not out of profits or surplus but out of deposits received…