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Issues involved: Appeal against deletion of disallowance u/s 80P(2)(a)(i) of the Act for three assessment years.
Summary: 1. The Revenue appealed against the deletion of disallowance under u/s 80P(2)(a)(i) of the Act for three assessment years by the CIT(A)-XX, Ahmedabad. 2. The Appellant, a society engaged in banking business, claimed deduction u/s 80P(2) of the Act. The Assessing Officer (A.O.) denied the deduction based on amendments to Section 2(24) and the introduction of Section 80P(4) from 1.4.2007, as the appellant did not fall under the specified categories. The A.O. held that income earned by the Co-operative Credit Society is not exempt under Section 80P(2)(a)(i) but falls under Section 80P(4) of the IT Act. 3. The matter was taken to the CIT(A), who partly allowed the appeal considering the appellant's reply, CBDT clarification, and relevant case laws. The CIT(A) held that the appellant, not being covered by Section 80P(4), is entitled to the deduction u/s 80P(2). The disallowance was deleted, but the interest income on short-term deposits was treated as income from other sources based on a Supreme Court decision. 4. The Revenue challenged the CIT(A)'s decision, but the Tribunal upheld the order, confirming that the appellant, being a cooperative society not in banking business, is entitled to deduction u/s 80P(2)(a)(i) of the Act. 5. Consequently, the Revenue's appeals were dismissed for all assessment years. Judges: G. C. Gupta (Vice President) and T. R. Meena (Accountant Member)
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