2024 (8) TMI 346

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....nfirming disallowance by A.O. of Rs. 1,97,79,808/- u/s 80P (2) (a) (i) of the Income Tax Act, 1961. 2. On facts, in circumstances of the case and in law, the learned CIT-A NFAC, erred in confirming disallowance by A.O. of Rs. 1,97,79,808/- u/s 80P(2)(d) of the Income Tax Act, 1961. 3. Without prejudice to Ground Nos. 2 & 3, the learned CIT-A-NFAC erred in confirming disallowance of proportionate deduction for cost of funds deployed in fixed deposits and shares. 4. The appellant craves leave to add, alter, modify or delete above Ground of Appeal." 2. Fact in brief is that assessee is a Credit Cooperative Society registered under the Maharashtra Cooperative Society Act 1960 and its membership is open to employees....

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....uded in the cooperative societies for the purpose of Sec. 80P(2)(d) of the Act. Therefore, the assessing officer concluded that benefit of 80P cannot be given either u/s 80P(2)(d)(i) as claimed by the assessee or 80P(2)(d) of the Act, therefore, deduction u/s 80P (2) (a) (i) to the extent of Rs.197,79,808/- being interest income/dividend received from cooperative bank was rejected and also not allowed as deduction u/s 80P(2)(d) of the Act. 3. Aggrieved, the assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 4. During the course of appellate proceeding before us the assessee has filed paper book comprising detail and copies of document filed before the assessing officer and ld. CIT....

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....& 1051/Mum/2023. The relevant extract of the decision in the said order is reproduced as under: "6. Heard both the side and perused the material on record. The assessee is a cooperative society registered under the Maharashtra Cooperative Society Act. It is engaged in providing credit to its members. During the year the assessee has shown net profit of Rs.17,73,07,795/- against which it has claimed deduction u/s 80P (2) (a) (i) of the Act. The income earned by the assessee is comprised business of providing loans to members, interest on deposit maintained with Mumbai District Central Co-op Bank and dividend on shares of that bank. The ld. Pr.CIT was of the view that such interest income and dividend income are not profits and gains....