9911796707
TMI Blog2018 (12) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case, are that the assessee is a Co-operative society engaged in the business of banking, providing credit facilities to its members. The return was filed declaring total income of Rs. 14,050/-. After claiming deduction of certain expenses, the assessee declared net profit of Rs. 3,61,567/- as against the gross receipts of Rs. 70,12,976/-. Deduction u/s. 80P was claimed and the assessee offered total income of Rs. 14,050/-. The AO observed that the assessee earned income by way of commission amounting to Rs. 1,33,390/- for collecting MSEB bills from customers on behalf of MSEB. The assessee claimed deduction u/s. 80P in respect of such amount by relying on the judgment of Hon'ble Bombay High Court in CIT Vs. Ahmednagar District Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity. 5. Section 80AB provides that : "Where any deduction is required to be made or allowed under any section included in this Chapter under the heading `C- Deductions in respect of certain incomes' in respect of any income of the nature specified in that section which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, for the purpose of computing the deduction under that section, the amount of income of that nature as computed in accordance with the provisions of this Act (before making any deduction under this Chapter) shall alone be deemed to be the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income." I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee from this activity. I, therefore, countenance the view point of the first appellate authority on this point. 6. The second component of the disallowance of deduction is interest received by the assessee on FDR with IDBI bank amounting to Rs. 3,01,034/-. Here again, it is noticed that the assessee earned interest income of Rs. 3,01,034/-. As per assessee's own version given to the authorities, it incurred cost of funds at Rs. 3,32,967/- for earning such interest income. Once again, it is clear that the deduction for a sum of Rs. 3,32,967/- has been allowed by the AO. The amount of gross interest income, being less than the amount of expenses incurred, cannot entitle the assessee to qualify for separate deduction u/s. 80P on the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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