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TMI Blog2019 (7) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... e Trust and collected the interest. Since the interest received was from the member of the society, the interest collected by the society is entitled for deduction u/s 80P. As seen from the assessment order, the assessment was completed u/s 143(3) and during the assessment proceedings, the AO called for the books of accounts, and the other details, in response to which the Ld.AR furnished the details. After examining the books of accounts and the other details, vouchers for expenses, the assessment was completed by the AO allowing deduction u/s 80P. Therefore, it is incorrect to say that the AO allowed exemption u/s 80P without examining the details. The sole issue involved in the assessment is deduction u/s 80P and hence we are not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs.Nil vide order dated 25.01.2016. Subsequently, the Pr.CIT found from the 26AS statement that the assessee had received a sum of ₹ 14 lakhs as interest on deposits made in Varahalakshmi Narasimha Swami Educational Trust (in short Trust ) which is not a cooperative society. As per the provisions of section 80P(2)(a)(i) of the Act, in case the cooperative society is engaged in carrying on the business of banking or providing credit facilities to its members, the whole of the amount of profits and gains of the business in respect of which deduction is sought must constitute the operational income and not the other income which accrues to the society. Hence, held that the interest received by the assessee to the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in support of the assessee s claim that the Trust is a member of the society. Ld.AR argued that since, the Trust is a member of the society and the amount given to the Trust is a loan and the bye laws of the society permits the Trust to become a member, there is no under assessment which caused prejudice to the revenue. The Ld.AR further submitted that during the assessment proceedings, the assessee has produced the books of accounts which were examined by the AO and satisfied with regard to the assessee s eligibility for deduction u/s 80P, hence, submitted that there is no error in the assessment order which requires revision u/s 263, accordingly requested to quash the order passed u/s 263. 4. On the other hand, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st collected by the society is entitled for deduction u/s 80P of the Act. As seen from the assessment order, the assessment was completed u/s 143(3) and during the assessment proceedings, the AO called for the books of accounts, and the other details, in response to which the Ld.AR furnished the details. After examining the books of accounts and the other details, vouchers for expenses, the assessment was completed by the AO allowing deduction u/s 80P. Therefore, it is incorrect to say that the AO allowed exemption u/s 80P without examining the details. The sole issue involved in the assessment is deduction u/s 80P and hence we are not inclined to accept the contention of the revenue that the AO has allowed deduction u/s 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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