TaxTMI 
TaxTMI 
2019 (2) TMI 1205
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....and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) is not justified in denying deduction u/s 80P(2)(a) in respect of interest received from Ghatge Patil Group of companies amounting to Rs. 23,74,646/-. He has erred in ignoring the fact that such interest is earned by the society in the course of its business activity. 2. On the facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) has erred in considering that there is no business connection of the appellant with the Ghatge Patil group of companies. 3. On the facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) failed to appreciat....
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....in law the learned Commissioner of Income Tax (Appeals) has erred in considering that there is no contract between the appellant and the group companies which authorize such interest when in fact section 49(3) of the Maharashtra Cooperative Societies Act 1960 makes it mandatory for employers to pay such due amount along with interest in case of such form of Salary Earners' Cooperative Societies. 8. On the facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) has erred in not allowing proportionate deduction of expenses from the interest earned. 10. The Appellant craves, to consider each of the above grounds of appeal without prejudice to each other and craves leave to ad....
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....stallment and remitted the same to the society. Reference was made to section 49 of the Maharashtra Co-operative Societies Act, under which this facility to members is provided, in turn, the employee gives authorization to his employer to deduct the amount of loan installment and interest from his salary and to remit the same to assessee's society towards recovery of loan. As per section 49(3) of the Maharashtra Co-operative Societies Act, the employer was bound to deduct loan installment and remit the same to the assessee and in case the employer fails to deduct or after deducting fails to remit the same, then the company was liable to pay installment along with 1 ½ time interest to the assessee society. It was thus, explained that ....
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..... The learned Departmental Representative for the Revenue pointed out that the said interest was not received from its members but was received from the companies in which the members were employed and in the absence of any contract signed by the said company, the said interest could not be held to be earned during business activity of assessee's society. 9. We have heard the rival contentions and perused the record. The assessee was Credit Co-operative Society of the employees of Ghatge and Patil Group of Companies. As per its business activity, the assessee was advancing loan to its members, who in turn, were the employees of Ghatge and Patil group of companies. The said loans advanced by it were to be recovered from the salaries of em....