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TMI Blog2022 (12) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... not income from business by the Hon ble Supreme Court in the said case. But in the present case the assessee claim deduction on interest from Cooperative Banks in respect of availing facility to take cash from the said banks which is directly related to the business of the assessee society. Thus, the CIT(A) as well as the AO was not right in disallowing the interest component claimed by the assessee under Section 80P(2)(a)(i) of the Act. Appeal of the assessee is allowed. - I.T.A. No.348/Ahd/2022 - - - Dated:- 16-12-2022 - Ms. Suchitra Kamble, Judicial Member For the Appellant : Shri S. N. Divatia, A.R. Shri Samir Vora, A.R. For the Respondent : Shri Alpesh Parmar, Sr. D.R. ORDER The appeal filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee is a Credit Co-operative Society engaged in the business of providing its credit facilities to its members and taking deposits from its members. The assessee filed its return of income for A.Y. 2018-19 on 07.07.2018 declaring total income of Rs. NIL. The case was selected for limited scrutiny assessment related to issues that of Investments / Advances / Loans and deduction from total income under Chapter VI-A. The Assessing Officer observed that in the relevant previous year i.e. F.Y. 2017-18 the assessee claimed deduction of Rs. 27,35,229/- under Section 80P(2)(a)(i) of the Act which was received in respect of bank account and bank share dividend. The Assessing Officer made addition of Rs. 19,14,547/-. 4. Being aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has claimed deduction of Rs. 19,01,887/- being interest from Cooperative Bank i.e. The Banaskantha Dist. Central Co-op. Bank Ltd. and Mehsana Urban Cooperative Bank under Section 80P(2)(d) of the Act. From the perusal of Profit Loss account the said receipts of dividend are shown to the extent of Rs. 12,660/- of bank share and thus the total receipt from Cooperative Banks come to Rs. 19,14,547/-. The reliance of the Hon ble Supreme Court s decision that of Totgars Cooperative Sale Society Ltd. is not justifiable in the present case as the interest income had on the surplus of its funds not immediately required for its business was declared as not income from business by the Hon ble Supreme Court in the said case. But in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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