TaxTMI 
TaxTMI 
2016 (3) TMI 1434
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....to the assessee on 18-08-2010. During the course of scrutiny assessment proceedings, the Assessing Officer observed that the assessee has earned certain incomes (listed below) on which assessee is not eligible to claim deduction u/s. 80P of the Act : Sr. No. Income Amount 1 Interest Rs. 11,85,266/- 2 Locker Rent Rs. 11,237/- 3 Ambulance Rent Rs. 1,40,230/- 4 MSEB Bill Commission Rs. 98,870/- 5 Shop Rent Rs. 41,900/- 6 Health Club Fees Rs. 72,500/- Aggrieved by the assessment order dated 30-12-2011, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) vide impugned order accepted some of the contentions of the assessee and granted part relief to the assessee. However, the Commissioner of Income Tax (Appeals) directed the Assessing Officer not to allow deduction of Rs. 50,000/- u/s. 80P(2)(c)(ii) of the Act. The Assessing Officer had earlier granted deduction to the assessee under the aforesaid provisions. Against the findings of the Commissioner of Income Tax (Appeals) now, both the assessee and the Revenue are in appeal before the Tribunal. 3. T....
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....withdrawing the deduction granted by the AO of Rs. 50,000/- under section 80P(2)(c)(ii). 8. The Appellant craves for addition to, deletion, alteration, modification, change any of the grounds." 4. None has appeared on behalf of the assessee. However, written submissions have been filed by the assessee through FAX. The same are reproduced here-in-under: "1. The appellant is a Cooperative Society carrying on the banking business. 2. The return of income for the year under review was filed by the appellant on 13.02.2010 declaring Total Income at, Rs.NIL/- after claiming deduction U/s. 80P(2) of the Act at Rs. 8,48,412. 3. The First issue involved in the present case is that the AO has not granted deduction u/s. 80P in respect of following class of activities (1) Locker Rent (2) Ambulance Rent (3) Commission on Collection of MSEB bills (4) Health Club The CIT(A) has also confirmed the order of A.O. that the appellant is not eligible for deduction u/s. 80P in respect of above activities 4. The CIT((A) has allowed only 10% of the gross receipts of above classes of income for expenses as against a....
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....e issues raised in the present appeal are identical to the issues decided by the Co-ordinate Bench of the Tribunal in assessee's own case in ITA Nos. 1521 & 1522/PN/2015 for the assessment years 2010-11 and 2011-12 decided on 10-03-2016. As regards the appeal filed by the Department, the ld. DR contended that the issues raised in the appeal have tax effect below than the monetary limit recently prescribed by the CBDT circular No. 21/2015, dated 10-12-2015. 6. We have heard the submissions made by the ld. DR. We have also perused the orders of the authorities below and the written submissions filed by the assessee. The assessee in appeal has assailed the order of Commissioner of Income Tax (Appeals) in disallowing deduction u/s. 80P(2) in respect of incomes earned by the assessee from the following activities : 1) Locker Rent 2) Ambulance Rent 3) Commission on Collection of MSEB bills 4) Health Club Apart from the above, the assessee has also assailed the action of Commissioner of Income Tax (Appeals) in disallowing deduction u/s. 80P(2)(c)(ii) which was earlier granted by the Assessing Officer. We observe that on similar grounds the asse....
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....B 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. We also simultaneously find merit in the alternate plea of the assessee that proportionate expenses attributable to earning of such income ought to have been allowed by the authorities below. In view of the fair admission on the part of the assessee, the finding of the CIT(A) in respect of Shop Rent Income is sustained. With regard to other income, namely, Health Club Fees, we once again hold that expenses attributable to the running of the Health Club should be allowed to the assessee while determining the income from such activity on reasonable/proportionate basis. However, we do not find any merit in claim of the assessee for deduction under section 80P(2)(a)/80P(2)(b) of the Act in respect of this activity. 11. As regards withdrawal of deduction of Rs. 50,000/- as allowed by the Assessing Officer under section 80P(2)(c), we find merit in the plea of the assessee that a co-operative society engaged in ....