Law:

Section:

S ection 32AB of the Income-tax Act, 1961 - Investment Deposit Account - Computation of Profit Interest, dividend and rent are includible in business income for purpose of computing allowance under section 32AB [Assessment year 1990-91] [In favour of assessee] CIT v. Tirupattur Co-op. Sugar Mills Ltd. [2009] 310 ITR 360 (Mad.) In view of the decisions in the case of CIT v. Tamil Nadu Mercantile Bank Ltd. [2002] 255 ITR 205 (Mad.), Carborandum Universal Ltd. v.CIT [2004] 265 ITR 372 (Mad.), interest, dividend and rent are includible in business income for purpose of computing allowance under section 32AB. Section 80P of the Income-tax Act, 1961 - Deductions - Income of Cooperative Society Where assessee was advancing loans to growers to procure material for its own business and while making assessment, Assessing Officer disallowed assessee's claim for deduction under section 80P(2)(a )(i) in respect of interest received from cane-growers on ground that assessee was not engaged in business of providing credit facilities to its members but Tribunal allowed assessee's claim, order of Tribunal allowing claim of assessee was to be set aside and matter was remitted back to Tribunal for reconsideration as per direction of Supreme Court in case of CIT v.Ponni Sugars & Chemicals Ltd. [2008] 306 ITR 392 [Assessment year 1990-91] [Remanded] CIT v. Tirupattur Co-op. Sugar Mills Ltd. [2009] 310 ITR 360 (Mad.) The assessee was a co-operative society engaged in the business of manufacture and sale of sugar. The assessee was advancing loans to the growers to procure material for its own business. While making the assessment, the Assessing Officer disallowed the assessee's claim for deduction under section 80P(2)(a)( i) in respect of the interest received from the cane-growers on the ground that the assessee was not engaged in the business of providing credit facilities to its members. The Tribunal allowed the assessee's claim under section 80P(2)(a)(i ) following its order in Madurantakam Co-operative Sugar Mills Ltd. made in I.T.A. No. 1605/Mad./93 and also the order of the instant Court in the case ofCITv. Pondicherry Co-operative Housing Society Ltd. [1991] 188 ITR 671…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492