TaxTMI 
TaxTMI 
2023 (10) TMI 21
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....e against the assessment order passed under Section 143(3) of the Income-tax Act, 1961 (the Act) dated 7th April, 2021, passed by National e-Assessment Centre, Delhi (the learned Assessing Officer), was partly allowed. 02. Assessee is aggrieved and has preferred the appeal, raising following grounds of appeal:- "1. On the facts and in the circumstances of the case and in law the lower authorities have erred in denying the deduction claimed under Section 80P(2)(a)(i) of IT Act, for Rs.1,32,3,456/- being interest/ dividend received from Co-Op Banks, Rs.1,08,45,349, Electricity bill counter income, Rs.21,57,987/-, Provision Rs.35000/- and Office rent and tax deposit Rs.1,90,140, respectively, without realizing the fact that these receipts a....
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....ing Officer was of the view that assessee has earned income with respect to 10 items which are not income earned by the assessee from the business of the Co-operative Society-but 'income from other sources' taxable under Section 56 of the Act. The sum total of such ten items were determined at Rs.1,46,37,054/-. The learned Assessing Officer was of the view that other income earned by the assessee society is not eligible for deduction under Section 80(P)(2)(a)(i) of the Act as such income is not derived from the business of banking or providing credit facilities to its members. The other income under question was not the interest received from members of the assessee's society for providing credit facilities to them. Accordingly, the assessm....
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....to the electricity bill counter income of Rs.21,67,987/-, provision for audit fee of Rs.35,000/- and office rent and tax deposit of Rs.1,90,140/- he held that these incomes are not attributable to or related to providing credit facilities to its members. He relied upon the decision of Hon'ble Supreme Court in case of Mavilayi Services Co-operative Bank Ltd. vs. CIT dated 12.01.2021 and held that same are not eligible for deduction under Section 80(P)(2)(i) of the Act. Accordingly, he disallowed the deduction under Section 80(P)(2)(d) on sum of Rs.1,32,38,450/-. Therefore, assessee is in appeal before us. 06. The learned Authorized Representative submitted that i Assessee has received interest and dividend from Co-operative bank of R....
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....t with any other co-operative society wholly of such income is deductible under 80(P)(2)(d) of the Act. Assessee has stated it has received interest and dividend from co-operative banks amounting to Rs.1,08,45,349/- and therefore, the above deduction is available to the assessee under 80P(2)(d) of the Act. The deduction is correctly denied under Section 80P(2)(d) of the Act. ii. Rs.35,000/- is a reversal of provision of audit fees. The deduction of the audit fee expenditure is allowable to the assessee as profits and gains of business attributable to business of co-operative banking. The reversal of fees is also part of the business income of the assessee. Therefore, Rs.35,000/- should be granted to the assessee as deduction under Sectio....