2019 (3) TMI 385

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....able to the Business Income and denying the deduction u/s 80P(2)(a)(i) of the Income Tax Act, 1961. 2. Alternatively not allowing the legitimate expenditure of Rs. 1,76,564/- incurred against the earning of MSEB Gross Commission Rs. 1,61,459/-. However, the Ld. ITO has allowed only Rs. 30,485/- on heterogeneous basis instead of homogenous basis. Before arriving at taxable MSEB Commission Income. These expenditure of Rs. 1,76,564/- must be allowed before calculating Net Taxable Income under these sources of Income and enhancing 80P(2)(a)(i) deduction by equal amount." 3. Briefly stated the relevant facts include that the assessee is a Cooperative Society registered under the Maharashtra Co-operative Societies Act, 1960. ....

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....mental Representative for the Revenue, it transpires that similar issue of Electricity Commission arose before the Tribunal in the case of Banganga Nagri Sahakari Patsanstha Ltd. Vs. ITO (supra), wherein it was held as under:- "10. We have carefully considered the rival submissions, orders of the authorities below and case law cited. The short question before us is to determine eligibility of deduction under section 80P of the Act in respect of income earned from certain allied activities viz. (i) Locker Rent; (ii) Ambulance Rent; (iii) Commission on Collection of MSEB bills; and (iv) Health Club by cooperative credit society carrying on banking business. The alternate ground agitated by the assessee is towards ad-hoc estimation of....

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....uary clause of section 80P(2)(c)(ii). We also notice that the Income from MSEB commission is held to be business activity as per decision cited by the assessee in the case of Ahmednagar District Co-operative Bank Ltd. (supra) and other decisions noted above. Accordingly, we hold that the assessee is entitled to relief under section 80P as per law....." 11. The issue of Electricity Commission arising in the present appeal is similar to the issue before the Tribunal and following the same parity of reasoning, this issue is decided in favour of assessee. Accordingly, relevant ground is allowed. 12. The issue of Bank Interest has already been settled by the Apex Court in the case of CIT Vs. Nawanshahar Central Cooperative Bank....