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TMI Blog2019 (4) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... sputed in appeal before the Tribunal, we find no infirmity in the order passed by the CIT(A) on this issue. Whereas, since the assessee is not entitled to claim deduction on the interest income earned from the investments made in the scheduled bank, the CIT(A) has rightly confirmed the addition of interest income earned from SBI, Neyveli. Thus, the ground raised by assessee stands dismissed for the assessment years under consideration. Deduction under section 80(P)(2)(a)(i) - Held that:- Assessee society is not granting any loan to general public and only extending credit facility to its members. Thus, we find no reason to interfere with the order passed by the ld. CIT(A). Hence, the ground raised by the Revenue stands dismissed for both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted for adjudication. 3. Brief facts of the case are that the assessee is a co-operative credit society which extends credit to its members. Certain surplus funds were parked for liquidity in another banks and earned interest income and claimed deduction under section 80(P)(2) of the Act. In the assessment order, the Assessing Officer stated that since the assessee is a credit society, only the interest income earned from the credit facilities provided to its members alone quality for deduction under section 80(P)(2) of the Act and accordingly, the interest income claimed as deduction was brought to tax. 4. On appeal, after considering the submissions as well as distinguishing the case law relied upon by the assessee, the ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) and not disputed in appeal before the Tribunal, we find no infirmity in the order passed by the ld. CIT(A) on this issue. Whereas, since the assessee is not entitled to claim deduction on the interest income earned from the investments made in the scheduled bank, the ld. CIT(A) has rightly confirmed the addition of interest income earned from SBI, Neyveli. Thus, the ground raised by assessee stands dismissed for the assessment years under consideration. I.T.A. Nos. 1045 1046/Chny/2018 [AY: 2013-14 2014-15] 7. Both the appeals filed by the Revenue are delayed by 17 days, for which, the Revenue has filed petitions for condonation of the delay, to which; the ld. Counsel for the assessee has not raised any serious obje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Benches of the Tribunal have clearly held that the assessee is not a co-operative bank and the provisions of section 80(P)(4) of the Act are not attracted. Therefore, the Hon ble High Court has held that the assessee is eligible for exemption under section 80(P)(2)(a)(i) of the Act. The ld. DR could not controvert the above decision of the Hon ble High Court. However, the ld. DR relied on the decision of the Hon ble Supreme Court in the case of Citizen Co-operative Society Ltd. V. ACIT 397 ITR 1. The said case law relied on by the ld. DR has no application to the facts of the present case because, the assessee society is not granting any loan to general public and only extending credit facility to its members. Thus, we find no reason to int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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