Subject to what is stated above, these civil appeals filed by the assessee s are dismissed with numberorder as to companyts.
For all the above Assessment Years 1991 1992 to 1999 2000 except Assessment Year 1995 1996, assessee s filed its Returns disclosing income from business, i.e., marketing of agricultural produce of its members and providing credit facilities to them.
The assessee is the appellant in all eight civil appeals.
In respect of 3/ 3 above mentioned interest income, assessee s claimed deduction under Section 80P 2 a i of the Act.
The assessee is the appellant in all eight civil appeals.
The assessee Society was assessed to tax as a companyperative society.
Assessee s also filed its Profits and Loss Accounts and its balance sheets along with its Returns.
The assessment s for the afore stated period stood re opened by issue of numberice s under Section 148 of the Act.
The bunch of civil appeals filed by the assessee Society companycerns Assessment Years 1991 1992 to 1999 2000 excluding Assessment Year 1995 1996 however, the lead matter is civil appeal arising out of S.L.P. C No.7572 of 2009 which relates to Assessment Year 1991 1992.
On the basis of the balance sheets for the relevant assessment years, under instructions from the Assessing Officer, assessee s submitted a chart to the Assessing Officer giving break up of assets and liabilities.
On the basis of the balance sheets for the relevant assessment years, under instructions from the Assessing Officer, assessee s submitted a chart to the Assessing Officer giving break up of assets and liabilities.
Assessee s also filed its Profits and Loss Accounts and its balance sheets along with its Returns.
J. H. KAPADIA J. AFTAB ALAM New Delhi, February 08, 2010.
Capital Asami A c Deposits, Other Total 3 , 4 Year Reserve Fund Purchasers A c Loans, Interest Liabilities 5 Other Funds Payable Expenditure Profits 1 2 3 4 5 6 1991 92 79,200,553.00 39,341,647.00 45,772,398.00 3,948,442.00 89,176,115.00 1992 93 97,769,923.00 41,684,890.00 59,071,490.00 902,856.00 101,659,132.00 1993 94 116,354,655.00 37,674,924.00 68,927,247.00 2,893,519.00 109,494,694.00 1994 95 133,817,620.00 42,882,786.00 86,462,118.00 1,440,446.00 142,886,414.00 1995 96 156,948,290.00 46,898,160.00 107,201,490.00 4,189,923.00 158,289,580.00 1996 97 180,468,526.00 53,274,684.00 125,289,995.00 3,568,644.00 182,133,326.00 1997 98 211,686,266.00 52,510,175.00 142,529,130.00 46,694,814.00 241,734,125.00 1998 99 253,295,055.00 66,074,107.00 175,757,230.00 17,342,956.00 259,174,281.00 1999 00 269,520,510.00 124,571,325.00 209,202,203.00 25,199,555.00 358,973,088.00 The Assessing Officer held, on the facts and circumstances of these cases, that the interest income which the assessee s had disclosed under the Head Income from business was liable to be taxed under the Head Income from other sources.
The bunch of civil appeals filed by the assessee Society companycerns Assessment Years 1991 1992 to 1999 2000 excluding Assessment Year 1995 1996 however, the lead matter is civil appeal arising out of S.L.P. C No.7572 of 2009 which relates to Assessment Year 1991 1992.
The assessee Society was assessed to tax as a companyperative society.
We re produce hereinbelow the said chart See Annexure B under the caption Liabilities LIABILITIES Asstt.
Assessee s is a companyperative credit society.
This argument was rejected by the Assessing Officer as also by the Tribunal and the High Court, hence, these civil appeals have been filed by the assessee s .
We re produce hereinbelow the said chart See Annexure B under the caption Liabilities LIABILITIES Asstt.
On 2/ 2 such investments, interests accrued to the assessee s .
In this companynection, the 4/ 4 Assessing Officer held that the assessee Society had invested the surplus funds as, and by way of, investment by an ordinary investor, hence, interest on such investment has got to be taxed under the Head Income from other sources.
In this companynection, the 4/ 4 Assessing Officer held that the assessee Society had invested the surplus funds as, and by way of, investment by an ordinary investor, hence, interest on such investment has got to be taxed under the Head Income from other sources.
According to the impugned judgement, which affirms the decision of the Income Tax Appellate Tribunal Tribunal, for short, such interest income would fall under the Head Income from other sources under Section 56 and number under Section 28 of the Income Tax Act, 1961 Act, for short, and, companysequently, the assessee Society would number be entitled to deduction under Section 80P 2 a i of the Act.
In this case, we are only companycerned with interest income on short term Bank deposits and securities.
This argument was rejected by the Assessing Officer as also by the Tribunal and the High Court, hence, these civil appeals have been filed by the assessee s .
REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.
During the relevant assessment years in question, it had surplus funds which the assessee s invested in short term deposits with the Banks and in Government securities.
For all the above Assessment Years 1991 1992 to 1999 2000 except Assessment Year 1995 1996, assessee s filed its Returns disclosing income from business, i.e., marketing of agricultural produce of its members and providing credit facilities to them.
Capital Asami A c Deposits, Other Total 3 , 4 Year Reserve Fund Purchasers A c Loans, Interest Liabilities 5 Other Funds Payable Expenditure Profits 1 2 3 4 5 6 1991 92 79,200,553.00 39,341,647.00 45,772,398.00 3,948,442.00 89,176,115.00 1992 93 97,769,923.00 41,684,890.00 59,071,490.00 902,856.00 101,659,132.00 1993 94 116,354,655.00 37,674,924.00 68,927,247.00 2,893,519.00 109,494,694.00 1994 95 133,817,620.00 42,882,786.00 86,462,118.00 1,440,446.00 142,886,414.00 1995 96 156,948,290.00 46,898,160.00 107,201,490.00 4,189,923.00 158,289,580.00 1996 97 180,468,526.00 53,274,684.00 125,289,995.00 3,568,644.00 182,133,326.00 1997 98 211,686,266.00 52,510,175.00 142,529,130.00 46,694,814.00 241,734,125.00 1998 99 253,295,055.00 66,074,107.00 175,757,230.00 17,342,956.00 259,174,281.00 1999 00 269,520,510.00 124,571,325.00 209,202,203.00 25,199,555.00 358,973,088.00 The Assessing Officer held, on the facts and circumstances of these cases, that the interest income which the assessee s had disclosed under the Head Income from business was liable to be taxed under the Head Income from other sources.
1622 OF 2010 Arising out of S.L.P. C No.7572 of 2009 M s. The Totgars Cooperative Sale Society Limited Appellant s Versus Income Tax Officer, Karnataka Respondent s W I T H Civil Appeal No.1623/2010 S.L.P. C No.10489 of 2009 Civil Appeal No.1624/2010 S.L.P. C No.10490 of 2009 Civil Appeal No.1625/2010 S.L.P. C No.10491 of 2009 Civil Appeal No.1626/2010 S.L.P. C No.10492 of 2009 Civil Appeal No.1627/2010 S.L.P. C No.10494 of 2009 Civil Appeal No.1628/2010 S.L.P. C No.10497 of 2009 Civil Appeal No.1629/2010 S.L.P. C No.10498 of 2009 J U D G M E N T H. KAPADIA,J. Heard learned companynsel on both sides.
Assessee s provides credit facilities to its members and also markets the agricultural produce of its members.
Leave granted.
In respect of 3/ 3 above mentioned interest income, assessee s claimed deduction under Section 80P 2 a i of the Act.
During the relevant assessment years in question, it had surplus funds which the assessee s invested in short term deposits with the Banks and in Government securities.
The substantial question of law which arises in this batch of civil appeals is Whether such interest income would qualify for deduction as business income under Section 80P 2 a i of the Income Tax Act, 1961?
Assessee s is a companyperative credit society.
H. KAPADIA,J. Heard learned companynsel on both sides.
Leave granted.
