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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 ..... to do the business of a cooperative bank, it is imperative to have a licence from the reserve bank of India which the assessee does not possess. In the present case before me also the assessee cooperative society is not licensed from the reserve bank of India to act as co-operative bank. Hence as per the ratio emanating from the aforesaid honourable apex court judgement the assessee is not affected by the provisions of section 80P(4).Thus we hold that assessee is entitled to deduction under section 80P(2)(a)(i). Assessee not entitled to treat interest income received from investment as business income by referring to honourable apex court decision in the case of Totgars cooperative society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] - This reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is directed against order of Ld. CIT-A dated 07/02/2017 and pertains to assessment year 2012-13. 2. The grounds of appeal read as under:- 1. The Ld. CIT(Appeals), 41 , Mumbai has erred in not allowing deduction u/s 80P(2)(a)(i) available to the appellant being a co-operative credit society. 2. The Ld. CIT(Appeals), 41, Mumbai has erred in disallowing provisions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety followed CBDT circular no 18/2015 dated 2nd November, 2015 and considered the interest as business income and hence eligible for deduction u/s 80P(2)(a)(i). The Ld AO considered the interest income as Income from other sources and erred in not considering the same as business income and hence eligible for deduction u/s 80P(2)(a)(i). Aggrieved by the assessment order passed by the Ld. AO, 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apex court decision in the case of Totgars' cooperative society Ltd. 9. I find that this reasoning of the assessing officer confirmed by the learned CIT-A is also flawed. The decision of honourable apex court in the decision referred by the Assessing Officer is not at all applicable on the facts of the case. The Totgars' society was not engaged into the business of accepting deposit and granting 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 inves ..... X X X X Extracts X X X X X X X X Extracts X X X X
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