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TMI Blog2010 (2) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... n 80-P(2)(a)(i), but has allowed the deduction upto Rs.50,000/- in terms of Section 80-P(2)(c) of the Income Tax Act – held that - This being a factual finding by the Tribunal that the assessee had made profit from securities only abiding the RBI guidelines, we are not inclined to go into this ground. In fact the Tribunal had relied upon the decision in Mayavaram Co-operative Urban Bank Limited case in ITA No.208/Mds/2007 dated 7.9.2007, wherein the submission of the learned counsel for the assessee that the assessee was eligible for deduction on the whole amount of profits and gains of business attributable to any one or more than such activities was accepted for deduction – order of ITAT allowed full deduction u/s 80P(2)(a)(i) sustained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax (Appeals), Tiruchirappalli by the assessee. The Commissioner of Income Tax (Appeals) dismissed the said appeal, which was again taken on appeal by the assessee to the Tribunal. The Tribunal, following the decision in Mayavaram Co-operative Union Bank Limited in ITA No.208/Mds/2007 dated 7.9.2007, allowed the appeal on the ground that the activities of the assessee-bank would amount to the business activity and therefore the assessee is entitled to deduction on the whole amount of profits and gains of business as per Section 80-P(2)(a)(i) of the Income Tax Act. This order is put in issue by the revenue in this appeal. 2. We have heard Mr.J.Narayanaswamy, learned counsel for the revenue and Mr.S.Sridharan, learned cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... econdly, the investments should be only with the members of the society and not with outsiders. If the investments are with outsiders, the provisions cannot be made applicable. Lastly, the learned counsel would submit that as per the norms of the Reserve Bank of India, the assessee can hold ten percent in approved securities and whatever the amount over and above ten percent is taxable. Hence for all the above reasons, the appeal should be allowed. 5. We have carefully considered the above submissions. So far as the first contention of the learned counsel for the revenue is concerned, factually, the respondent-assessee is primarily involved in banking activities and the transactions of investments by way of sale and purchase are not inci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me before this Court. Mr.J.Narayanaswamy, learned counsel for the revenue brought to our notice grounds D and E of the appeal grounds. So far as ground D is concerned, it is pleaded that the Tribunal erred in holding that the assessee had purchased/ held/sold and made profit from said securities only to the extent of abiding the RBI guidelines. This being a factual finding by the Tribunal that the assessee had made profit from securities only abiding the RBI guidelines, we are not inclined to go into this ground. In fact the Tribunal had relied upon the decision in Mayavaram Co-operative Urban Bank Limited case in ITA No.208/Mds/2007 dated 7.9.2007, wherein the submission of the learned counsel for the assessee that the assessee was eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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