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TMI Blog2017 (8) TMI 1637X X X X Extracts X X X X X X X X Extracts X X X X ..... visions for expenses as business expenses. 3. The Ld. CIT (Appeals), 41, Mumbai erred in not considering disallowances as part of business income and hence allowable as deduction u/s 80P(2)(a)(i). 4. The Ld. CIT(Appeals), 41, Mumbai erred in not considering interest income received on investments in co-operative banks as business income and hence allowable as deduction u/s 80P(2)(a)(i) 5. The Appellant further reserve the right to add, amend or alter the aforesaid grounds of appeal as they may think fit by themselves or by their representatives. 3. The statement of facts in this case reads as under:- The assessee is a co-op credit society having the business of accepting deposits and lending money to the members of the society. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O, the society filed an appeal with Commissioner of Income Tax (Appeals),36. The Ld. CIT (Appeals), 41, Mumbai dismissed all the grounds and upheld the order passed by the Ld.AO. 4. In this case the assessing officer denied the deduction under section 80P (2)(a)(i) to the assessee holding it to be co-operative bank and accordingly not eligible for the said deduction as per section 80(4). Learned CIT-A also confirmed this action. 5. Against this order, assessee is in appeal before the ITAT. 6. I have heard both the counsel and perused the records. I find that this issue now is squarely covered in favour of the assessee by the decision of honourable apex court in civil appeal number 10245 of 2017 in the case of the citizen cooperative so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting credit. Rather it was engaged in the activity for marketing of agricultural produce of its members. Hence this case laws is not at all applicable on the facts of the present case 10. In the present case assessee is engaging in to the business of accepting deposits and granting credit to its members. The assessee was utilising surplus fund in investments to earn income. This activity has direct & proximate connection or nexus to the earning of the assessee society. On this reasoning this activity of the assessee has been held to be business activity and the resultant income is treated as business income. There are several decisions in support of this proposition including that from ACIT vs. Buldhana Urban Cooperative Credit society Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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