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TMI Blog2014 (2) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and therefore the interest earned from short term deposits is business income and is eligible for deduction under Section 80P(2)(a)(i) and no portion thereof can be taxed under Section 56 as income from other sources – Decided against Revenue. Disallowance made on account of doubtful debt – Held that:- The decision in M/s. Vijaya Bank Versus Commissioner of Income Tax & Anr. [2010 (4) TMI 46 - SUPREME COURT] followed - Disallowance was made on account of doubtful debt and to that extent assessee-bank income increased - the additions were made on account of building funds had been debited in the assessee’s income generated from providing credit facility to its members – thus, it is equally eligible for deduction u/s. 80P thus were all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance Act 2006 from 2007-08. The AO gave reasonable opportunity of being heard. After considering the assessee s reply he held that any cooperative society engaged in carrying on the business of banking is governed by Gujarat Co-operative Society Act and also governed by Banking Regulation Act 1949 whereas co-operative society engaged in providing credit facility to its member governed by Gujarat Cooperative Society Act only and not by Banking Regulation Act. The provision of sub-section (4) are unambiguous and that it is clearly provided that it is applicable only to Co-op. Bank and not to Society providing credit facilities. It therefore follows that the provisions of section 80P(2)(a)(i) are now applicable only to Co-op. Societies eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 220 (Guj), and it was held that assessee is not a cooperative bank as assessee only activity that society is providing credit facility to its members than the whole of the income is eligible for deduction u/s. 80P(2)(a)(i). 7. Now revenue is in appeal before us. 8. Ld. DR relied upon the order of AO whereas learned counsel of the assessee has relied in case of ITAT Ahmedabad decision in case of Jafari Momin Vikas Co-operative Credit Society in ITA No. 1491/Ahd/2012 A.Y. 2009-10 order dated 31-10-2010 wherein identical issue has been allowed by Hon ble Bench in favour of the assessee. He argued that assessee is not a cooperative bank as defined in part-V of the Banking Regulation Act, 1949. The assessee has borrowed fund from the members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respectfully following the decision of Hon ble High Court on identical facts in all the case, we have considered view that sub-section (4) of section 80P is not applied in all the cases. Accordingly we confirmed the order of Ld. CIT(A) and dismissed the revenue s appeals. 10. The assessee s CO Nos. 82/Ahd/2013 and 97/Ahd/2013 in case of Meghraj Taluka Primary Co-op. Credit Society Ltd and the Bhiloda Taluka Primary Teachers Co-op Credit Society Ltd respectively are against the confirmation of addition by the Ld. CIT(A). In case of Meghraj Taluka Primary Co-op. Credit Society Ltd Rs. 75,000/- and in case of Bhiloda Taluka Primary Teachers Co-op Credit Society Ltd Rs. 50,000/- were confirmed by Ld. CIT(A) on the ground addition under the h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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