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TMI Blog2024 (8) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... iety has made deposits with other banks therefore the interest earned from such deposit also qualifies for deduction u/s 80P(2)(a)(i) being business income. Disallowance u/s 40A(ia) - Even if the disallowance u/s 40(a)(ia) is maintained it will simply increase the business income of the cooperative society which is already deductible u/s 80P(2)(a)(i) - As relying on case of Nashik Road Nagri Sahkari Patsanstha Limited .[ 2021 (12) TMI 1259 - ITAT PUNE] we are of the considered opinion that the appellant assessee is entitled for deduction u/s 80P(2)(a)(i) of the IT Act. Direct the assessing authority to allow deduction u/s 80P(2)(a)(i) of the IT Act in respect of interest income earned from members nominal members further directs to allow de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenges and peculiar facts that the same were sent on the email id of erstwhile employee/consultant and mofussil area of activity. 2. The learned CIT(A) erred in law and on facts in upholding the disallowance of deduction u/s 80P(2)(a)(i)/80P(2)(d) amounting to Rs. 68,24,572/-. The learned CIT(A) ought to have appreciated the fact that the appellant is eligible for claiming such deduction u/s 80P. 3. The learned CIT(A) erred in law and on facts in not appreciating that deduction u/s 80P(2)(a) and 80P(2)(d) has been allowed to appellant since past many years and thereby violating the principle of consistency/res judicata as so held by Apex Court in Radhasoami Satsang vs CIT [1992] 60 Taxman 248 (SC). 4. The learned CIT(A) erred in law and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and law the Assessing Officer passed order u/s 143(3) wherein the claim of deduction u/s 80P(2) of the IT Act was disallowed and additions were also made u/s 40(a)(ia) of the Act on account of failure to deduct tax at source on rent and audit fee payments. 4. Being aggrieved, an appeal was filed before LD CIT(A)/NFAC. Notices were issued but the assessee could not appear on the date of hearings due to the fact that the email belongs to the erstwhile employee of the society, who did not inform the society about the notices fixing the dates of hearing. LD CIT(A)/NFAC by an order dated 08-12-2023 dismissed the appeal of the assessee. 5. Being aggrieved by the decision of LD CIT(A)/NFAC, the appellant is in appeal before us. 6. LD AR submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garding bifurcation of interest earned from members non-members also the details of interest earned from investment with cooperative societies from other banks, therefore, the AO denied the deduction u/s 80P(2)(a)(i) of the IT Act. Further, disallowance u/s 40(a)(ia) for non-deduction of TDS on Audit fees payment Rent payment was also made. We find that the definition of member as per Maharashtra State Cooperative Societies Act includes nominal members also therefore the interest earned from nominal members also covered under business income which qualifies for deduction under section 80P(2)(a)(i) of the IT Act. It is also observed that during the course of its business the assessee society has made deposits with other banks therefore the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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