2019 (4) TMI 352

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n allowing deduction u/s 80P to the assessee even though assessee carries on the banking business and other business in the name of the co-operative credit society. 2. Onthe facts and circumstances of the case the Ld. CIT(A) has erred in law in allowing deduction u/s 80P(2)(a)(i) without considering inserted 80P(4) and sub-clause (viia) to section 2(24) vide Finance Act, 2006 w.e.f. 1.4.2007. 3.On the facts and circumstances of the case the Ld. CIT(A) has erred in finding the decision of the Supreme Court in the case of M/s. Totgar Co.op Sales Society Ltd. (322 ITR 285) wherein interest received by a co-operative society from investment of surplus funds is assessable as "Income from Other Sources" and thus not eligible for deduction u/s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing business, therefore, the assessee was not entitled for deduction u/s 80P of the Act and in support of this contention. The Ld. Representative of the revenue has placed reliance upon the decision of the Hon'ble Supreme Court in the case of Citizen Co-operative Society Ltd. ACIT, Circle 9(1), Hydrabad (2017) 84 taxmann.com 114 (SC). However, on the other hand, the Ld. Representative of the assessee has refuted the said contention and argued that the assessee nowhere doing the business banking, therefore, the CIT(A) has rightly allowed the claim of the assessee. Before going further, we deemed it necessary to advert the finding of the CIT(A) on record.: - "5. I have perused the assessment order, written submission and facts of the case. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as being confined to members." 5. On appraisal of the above said finding, we noticed that the CIT(A) has allowed the claim of the assessee on the basis of this fact that the assessee was not doing the banking business and the service of the assessee was not by the public at large. The assessee was not banking license as required Section 22 of the Act Banking Regulation Act. The assessee society was providing the finance facility to its limited members. However, on appraisal of the object of the assessee society, we noticed that there is a provision of nominal member whose liability limited to subscribe the shares of the society. However, they have not right to interfere in the object, function in the society. Nothing came into noticed tha....