JUDGMENT

1. The Court : Revenue has appealed against order dated 17t h November, 2017 passed by Income Tax Appellate Tribunal 'D' Bench, Kolkata in ITA 144/Kol/2016 pertaining to assessment year 2012-13. The substantial question of law, on which the appeal was admitted, is set out below:-

'Was Totgars (supra) made applicable to Co-operative Societies carrying on the business of banking or providing credit facilities to its members, by South Eastern Railway Employees Co-operative Credit Society Ltd. (supra)?'

2. Mr. Bhowmick, learned advocate appears on behalf of appellant- revenue and submits, declaration of law in Totgars Co-operative Sale Society Ltd. vs ITO reported in (2010) 322 ITR 283 (SC) was on the question whether interest on deposits/securities, which strictly speaking accrues to the members account, could be taxed as business income under section 28 of Income Tax Act, 1961 ? Supreme Court said, such interest income would come in the category of income from other sources. Hence, such interest income would be taxable under section 56 of the Act . In that connection section 80P was analyzed and appellant, being a co-operative sale society, was held against as follows:

'As st