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TMI Blog2025 (4) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... l preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the "Ld. CIT(A)"] dated 08.04.2024 for the AY 2020-21. 02. The issue raised by the assessee in grounds no.1 is against the order of ld. CIT (A) confirming the action of the ld. AO wherein the ld. AO treated the interest income of Rs. 2,29,87,670/- received from banks as income f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing/ providing credit facilities to its members. The ld. AO denied the said deduction u/s 80P(2)(a) of the Act on the ground that the interest income was not attributable to the business activity of the assessee in providing banking/ credit facilities to its members in the assessment framed u/s 143(3), read with section 144B of the Act dated 19th September, 2012. 04. In the appellate proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see by providing banking and credit facilities to its members. We note that the ld. AO relied on the decision of Hon'ble Apex Cort in the case of Saptagiri Pattina Souharda Sahakari Sangha Niyamitha vs. Income-tax Officer [2024] 162 taxmann.com 855 (Bangalore - Trib.)/[2024] 207 ITD 41 (Bangalore - Trib.)[22-05-2024], while rejecting the deduction claimed by the assessee u/s 80P(2)(a) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s 80P(2)(a) of the Act. The Hon'ble Calcutta High Court held while passing the said decision relied on the decision of Hon'ble Karnataka High Court in case of Guttigedarara Credit Co-operative Society Ltd. vs. Income-tax Officer, Ward 2(2), Mysore [2015] 60 taxmann.com 215 (Karnataka)/[2015] 234 Taxman 476 (Karnataka)/[2015] 377 ITR 464 (Karnataka)[09-06-2015], in which it has been h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, considering the ratio laid down in the above decisions and vis-à-vis the facts of the assessee's case, we are of the view that the money kept in the commercial and co-operative banks was not on account of money withheld which was due to its members. We note that the money deposited in the bank account of the assessee was out of the funds available from day-to-day operation of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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