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TMI Blog2023 (6) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... in law the Ld. CIT(A) has failed to delete the disallowance made by the Ld. A.O. of Rs. 9,43,000/-. Therefore, your appellant prays your good self to delete the disallowance of Rs. 9,43,000/- made by the Ld. A.O." ITA No.157/Ahd/2023 for A.Y. 2018-19 "1. The Dy. Comm. has erred in not considering the deduction u/s. 80P(2)(a) of the Income Tax Act, 1961, regarding the receipt of interest income of Rs. 5,51,878/- from the Pump Division of Mandali." 3. Taking up Assessment Year (A.Y.) 2017-18 as the issue involved is identical in both these appeals. The assessee filed return of income for A.Y. 2017-18 on 25.10.2017 declaring total income of Rs. 21,52,910/-. The return was processed under Section 143(1) of the Income Tax Act, 1961. The ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by the assessee for the delay appear to be genuine as the email id. submitted was not checked due to certain difficulties on the part of the assessee society. Therefore, the delay is condoned. 6. The Ld. AR submitted that the assessee is primary credit cooperative society consisting of two Divisions and main division which is engaged into providing credit facility to only its Farmer Members and other division is Petrol Pump Division. The assessee filed its return of income on 25.10.2017 declaring total income at Rs. 21,52,910/-. The Ld. AR submitted that the HO division is carried out different activities for its members such as selling of fertilisers, seeds, agriculture instruments to its farmer members and providing different types o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pump division. During the year, pump division had repaid the same to the HO division and also taken back from the HO division. The Ld. AR submitted that the pump division had taken the finance from the HO division on the basis of working capital requirement. Even the interest expenses calculated by the pump division on the days basis of outstanding balance at the rate of 12%, so there is no any excessive interest expense claimed by the pump division. Thus, interest expenses claimed by the pump division and the interest income shown in the HO Division which was claimed as deduction of Rs. 9,43,000/- is correct. The Ld. AR relied upon the decision of Tribunal in case of Ghatal Cooperative Agriculture and Rural Development Bank Limited vs. ACI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranch), therefore, the CIT(A) has rightly confirmed the order of the Assessing Officer thereby disallowing deduction under Section 80P(2)(a)(i) of the Act. 8. Heard both the parties and perused all the relevant material available on record. It is an admitted position that the Pump Division of the assessee society is not carrying out the activities beneficial to its farmer members. The activities carried out by the Pump Division are fully taxable and not coming under the purview of Section 80P of the Act. The decision cited by the Ld. AR will not be applicable in the present case as it is not in consonance with the requirement of Section 80P related to the distinguishing facts between the present assessee's case and in case the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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