2022 (1) TMI 928

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....ved on account of interest from Co-operative Bank. Reasons assigned by him for confirming the same are wrong and insufficient 2. The learned CIT(A) has erred in confirming the disallowance of deduction u/s 80P(2)(c )(ii) of Rs. 50,000. Reasons assigned by him for doing the same are wrong and insufficient 3. He was further erred in not serving notice u/s 250 of the Income Tax Act, 1961 to the appellant and pass the order. 4. Order passed is bad in law and contrary to the provisions of the Act. 3. In this case, order passed u/s. 143(1) of the I.T.Act, assessee was denied deduction u/s. 80P(2)(d) of Rs. 7,37,074/- and 80P(c)(2) of Rs. 50,000/-. The National Faceless Appeal Centre (NFAC) noted that brief facts as per assessees submission....

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....(ii) for Rs. 50,000 as it is other Co- op Society. While processing the return of income the CPC has disallowed deduction us 80P(2)(d) AND 80P(2)(c)(ii) of Rs. 7,37,074 and RS 50,000 and disallowed the claim of deduction u/s. 80P. 4. After noting the above submissions and the grounds raised by the assessee in this regard. The Ld.CIT(A) noted as under:- " The assessee is a Co-operative Housing Society and has claimed deduction u/s. 80P(2)(d) an amount of Rs. 7,37,074/- (including interest on saving fund Rs. 3,470/- being amount of interest from Co-operative. The appellant has also claimed deduction u/s. 80P(2)(c)(ii) of Rs. 50,000/- 5. Thereafter, section 80P was reproduced and finally, the Ld.CIT(A) has held as under: "However, as the....

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....processing, preserving, storing or marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members, the whole of the amount of profits and gains of business attributable to any one or more of such activities : Provided that in the case of a co-operative society falling under sub-clause (vi), or sub-clause (vii), the rules and bye-laws of 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; (b) in th....

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....me derived by the co-operative society from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities, the whole of such income; (f) in the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities or any income from house property chargeable under section 22. Explanation.-For the purposes of this section, an "urban consumers' co-operative society" means a society for the benefit of the c....