9911796707
TMI Blog2024 (10) TMI 1621X X X X Extracts X X X X X X X X Extracts X X X X ..... essarily cooperative societies in terms of the provisions of section 2(19) of the act. Therefore, interest earned by the assessee on its deposits with other cooperative banks, the assessee is eligible for deduction under section 80P(2)(d) of the Act. Assessee is also eligible for deduction to the extent of ₹ 50,000 in terms of provisions of section 80P(2)(C)(ii) of the act. Income from profits and gains from the specified activity, deduction is granted under section 80P(2)(a)(i) Deduction under section 80P(2)(d) only the deduction with respect to the interest received by the assessee from another cooperative bank which are cooperative society are granted. The learned CIT A has directed the learned assessing officer to examine the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lending money to the members of the society. It is considered as a resource society. It does not hold any license from the reserve bank of India for carrying on the banking business. It filed its return of income at a total income of ₹ 6,227,736/ and claimed the entire income as deduction under section 80(2)(a)(i) of the act. The case was selected for scrutiny and the claim of the assessee of deduction under section 80P was examined. The learned assessing officer held that assessee is a cooperative bank and therefore deduction under section 80P is not allowable in view of subsection 4 of the section. Further the assessee has earned interest from cooperative banks and other banks which are also not eligible for deduction. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the act. Further under section 80P(2)(d) any income earned by a cooperative society by way of interest or dividend by the cooperative society from its investment with any other cooperative society, the whole of such income is required to be granted as deduction. 8. Undisputed fact shows that assessee is earning business income from business of providing credit facilities to its members. Therefore, whole of the business income is deductible u/s 80P(2)(a)(i) of the Act . 9. Further with respect to the interest income earned by the cooperative society from another cooperative banks which are necessarily cooperative societies in terms of the provisions of section 2(19) of the act. Therefore, interest earned by the assessee on its deposits wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verify if the income is received from non-members, it should be chargeable to tax under the head income from other sources. If that happens, the assessee loses deduction under section 80P(2)(a)(i) to that extent as under that section only the business income is eligible for deduction. With respect to the deduction under section 80P(2)(d) of the act, he directed that the assessee should be granted deduction of interest income on from cooperative banks but not from the scheduled banks. 14. Both these issues have been decided by us in appeal of the assessee for assessment year 2017 18. And therefore, for the similar reasons the appeal of the assessee is allowed as indicated for assessment year 2017 18. 15. In the result both the appeals of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
