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TMI Blog2016 (1) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... mbers of the Credit Cooperative Society do not constitute public and there is no depositing, withdrawal by cheque or draft etc. - Decided against revenue. Taxing Commission income‟ under the head income from other sources - assessee demonstrated that there is no objection if the said amount is taxed as per the provisions of clause (c) to section 80P(2) - HELD THAT:- We remand this issue to the file of the AO for deciding the issue as per the said provisions of clause (c) of section 80P(2) of the Act, which covers the issue under consideration. We order accordingly. AO is directed to give deduction of ₹ 50,000/- as per the provisions of section 80P(2)(c)(ii) of the Act and allow a reasonable opportunity of being heard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80P(4) will not apply to the assessee-credit cooperative society. The contents of paras 6 and 7 of the CIT (A)‟s order are relevant in this regard. Aggrieved with the same, Revenue is in appeal before the Tribunal with the present appeal. 4. During the proceedings before us, Ld DR for the Revenue submitted that the order of the CIT (A) should be reversed. By mentioning the fact that lending and borrowing activities between the members of the society and the assessee constitutes banking activities‟. 5. On the other hand, Ld Counsel for the assessee heavily relied on the order of the CIT (A) and the contents of paras 6 and 7 of the impugned order. Further, Ld Counsel also relied on the citations relied upon by the CIT (A)& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, we have also perused the judgment of the jurisdictional High Court in the case of Quepem Urban Cooperative Credit Society Ltd vs. ACIT [2015] 377 ITR 272 (Bom), which was relied upon by the Ld Counsel for the assessee for the proposition that such lending activities do not constitute banking activities as the same are transacted between the cooperative society and the members of the society. Since, no public is involved the definition of banking‟ does not cover such activities. As such, there is no Reserve Bank of India‟s approval for conducting such banking activities in this case. He also relied on the definition of banking and read out from the contents of section 5 of the Banking Regulation Act, 1949 and the same read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the vendors. The said commission received from the vendors was partly distributed among the members of the cooperative society. 11. Before us, on the above backgrounds of the facts, Ld Counsel for the assessee demonstrated that there is no objection if the said amount is taxed as per the provisions of clause (c) to section 80P(2) of the Act. He also mentioned that as per the said provisions, such amounts should not be treated as profits or gains from business or profession‟. He also mentioned that the wording used in clause (c) attributable not from the business‟. Eventually, Ld Counsel for the assessee submitted that giving deduction out of the said commission income to the amount distributed among the members of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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