9911796707
TMI Blog2023 (10) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities have also admitted that assessee is carrying on the business of banking or providing credit facilities to its members, therefore, the activity of the assessee is classified under Section 80(P)(2)(a)(i) of the Act and it is wholly amount of profits and gains attributable to such activity is deductible under Section 80P(2)(a)(i) ORDER:- Under 80(P)(2)(d) any income by way of interest or dividend derived by the co-operative society from its investment with any other co-operative society wholly of such income is deductible under 80(P)(2)(d) of the Act. Assessee has stated it has received interest and dividend from co-operative banks and therefore, the above deduction is available to the assessee under 80P(2)(d) of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the deductions, the expenses which has already been included as profits and gains of business under Section 80(P)(2)(a) of the Act are not required to be disturbed. Assessee appeal partly allowed. - SHRI PRASHANT MAHARISHI, AM AND SHRI NARENDER KUMAR CHOUDHRY, JM For the Assessee by : Shri P.S. Shingte, Authorised Representative For the Revenue by : Shri Ashok Kumar Ambastha, SR DR ORDER PER PRASHANT MAHARISHI, AM: 01. ITA No. 1237/Mum/2023 for A.Y. 2018-19 is filed by Ballaleshwar Sahakari Patpetdhi Maryadit (assessee/appellant) against the appellate order passed by the National Faceless Appellate Centre, Delhi [the learned CIT (A)] dated 24th February, 2023, wherein the appeal filed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 76,34,545/- but declared income of ₹2,49,25,542/- and claimed the same as deduction under Section 80P(2)(a)(i) of the Act, and thus, declared the total income at ₹ Nil. The assessee was asked to substantiate the above claim of deduction. In response, assessee submitted that it is a Resource Society registered as a Co-operative society. Therefore, it is entitled to deduction under Section 80P of the Act. The learned Assessing Officer held that the assessee has relied upon the decision of Hon'ble Bombay High Court in case of M /s Quepem Urban Co-operative Credit Society Ltd. Vs. ACIT (2015) 377 ITR 272 (Bom.), but same is not accepted by the Revenue. Even the SLP filed before the Hon'ble Supreme Court is withdrawn by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Loan from deposit 51775/- 5. Electricity Bill counter Income 2167987 6. Printing and Stationary Deposit 111504/- 7. Recovery and Court Charge Deposit 409185/- 8. Service Exp 826134/- 9. Provision 35000/- 10. Office Rent Tax Deposit 190140/- Total 14637054 05. The assessee aggrieved wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived interest and dividend from Co-operative bank of ₹1,08,45,349/- and therefore, it is eligible for deduction either under Section 80(2)(a)(i) or under Section 80(P)(2)(d) of the Act. ii With respect to the electricity bill counter income, he submitted that it is also part of the banking business of the assessee. iii With respect to the provision of ₹35,000/-, he submitted that it is reversal of provision of payment of audit fees which is attributable to the banking business. iv With respect to the office rent and tax deposit of ₹1,90,140/-, he also submitted that same is part of the integral business of the assessee. 07. The learned Departmental Representative vehemently supported the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Therefore, ₹35,000/- should be granted to the assessee as deduction under Section 80P(2)(a)(i) of the Act. iii. With respect to electricity bill counter income of ₹21,67,987/- and office rent and tax deposit of ₹1,90,140/- are not at all related to the carrying on business of banking or providing credit facilities and therefore, both of this income are correctly treated by the lower authorities not as eligible business income u/s 80 P (2) (a) (i) of the Act . The electricity bill counter income of ₹21,67,987/- is other business income of the co-operative society and office rent and tax deposit is a rental income which is required to be taxed at income from house property or other income. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
