2021 (11) TMI 52

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....09.10.2018 is completely arbitrary, unjustified and illegal. 2. For that the facts of the case, the Ld. CIT(A) was wrong in dittoing the order of the A.O. and computing the total taxable income at Rs. 878,270/- as against the total income shown at NIL after deduction of income under section 80P of the I.T. Act, 1961, which is confirmed by Ld. CIT(A), therefore, his finding is completely arbitrary, unjustified and illegal. 3. For that on the facts of the case, The Ld. CIT(A) was wrong in not considering the fact that the assessee being a registered co-operative society 1s carrying on business and providing credit facilities to its members. The investment made on schedule banks and income earned on accrual basis reflected in its account w....

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....bserved that the assessee-society was not entitled to the exemption u/s 80P(2) of the Income Tax Act in respect of the said interest income. He, therefore, made the addition of the aforesaid amount into the income of the assessee. 6. Being aggrieved by the said order of the Assessing Officer, the assessee filed appeal before the CIT(A). However, the ld. CIT(A) observed that the aforesaid amount since was not generated from the business activity of the assessee, therefore, the same was not allowable u/s 80P(2) of the Income Tax Act. 7. Being aggrieved by the said order of the ld. CIT(A), the assessee has come in appeal before this Tribunal. 8. I have heard the rival contentions and gone through the records. The relevant provision of secti....

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....f the society restrict the voting rights to the following classes of its members, namely:- (1) the individuals who contribute their labour or, as the case may be, carry on the fishing or allied activities; (2) the co-operative credit societies which provide financial assistance to the society; (3) the State Government;" 9. As per the above reproduced provisions, in case of a cooperative society engaged in carrying on business of banking or providing credit facilities to its members, the whole of the amount of profits of business attributable to any or more of such activities as mentioned in section 80P(2), are exempt from taxation. Admittedly, as mentioned by the Assessing Officer in the assessment order itself, the assessee-society ....