TaxTMI 
TaxTMI 
2025 (7) TMI 1120
X X X X Extracts X X X X
X X X X Extracts X X X X
....facilities to its members, sale of LPG gas cylinders to its members and other activities such as renting hall, zerox and lamination. For AY 2016-17, the assessee filed its original return of income on 20.02.2018 declaring total income at Rs. Nil after availing deduction of Rs. 21,15,324/- under chapter VI-A of the Income Tax Act, 1961 (the "Act"). The return was subsequently revised on 16.03.2018 declaring gross total income of Rs. 21,39,229/- and after claiming deduction under chapter VI-A of the Act of Rs. 21,14,557/- in respect of income from co-operative society, the assessee declared taxable income at Rs. 24,670/-. The case of the assessee was selected for scrutiny under CASS on the issue "large deduction claimed under chapter VI-A fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the assessment at the assessed income of Rs. 22,29,230/- u/s 143(3) of the Act vide order dated 10.12.2018 by making the addition of - (i) Rs. 21,14,557/- on account of disallowance of deduction u/s 80P and (ii) Rs. 90,000/- on account of disallowance of provision of expense debited to P&L account, to the return income of Rs. 24,670/-. 3. Aggrieved, the assessee filed an appeal before the Ld. CIT(A) challenging the above additions/disallowances made by the Ld. AO. Before the Ld. CIT(A), relying on various favorable decisions on the impugned issue, the assessee submitted that it has rightly claimed deduction of - (i) Rs. 18,43,446/- u/s 80P(2)(a)(i) of the Act comprising of Rs. 18,24,574/- in respect of profits from carrying on business of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ade by the Ld. AO observing as under : "1. Grounds of appeals objects to disallowing adjusted net profit of Rs. 2064557 being credit facilities provided to its members. The original return of income for AY 2016-17 was filed by the assessee society on 20.02.2018 declaring total income at Rs. Nil after availing deduction of Rs. 21.15.324/- under chapter VI-A of the Income-tax Act, 1961. Further, the assessee society was filed the revised return of income on 16.03.2018 declaring taxable income of Rs. 24,670/- alter availing deduction of Rs. 21,14,3241- under chapter VI-A of the income-tax Act. 1961. Whether in case of society engaged in providing credit facilities to its members, it is only interest derived from credit provided to its member....
X X X X Extracts X X X X
X X X X Extracts X X X X
....account, forming part of the business income further eligible to deduction u/s 80P(2)(a)(i), as enhanced eligibility. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal." 5. The Ld. AR at the outset submitted that the first issue relating to claim of deduction u/s 80P(2)(a)(i) and 80P(2)(d) of the Act is covered in favour of the assessee by catena of decisions of various judicial forums, including the Pune Tribunal. He submitted that the said deduction has been rightly claimed by the assessee as the income is earned out of business operations carried out by the assessee. Further, the assessee is also eligible for the deduction of Rs. 50,000/- in respect of profits from other activities u/s 80P(2)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....find that this issue is no more res-integra and has been decided in favour of the assessee by various decision(s) of the Co-ordinate Bench(es) of the Tribunal including the Pune Tribunal wherein it has been consistently held that the assessee society is eligible for deduction u/s 80P(2)(a)(i)/80P(2)(d) of the Act as the same is attributable to the business of the assessee society. Support may be drawn from the decision of the Co-ordinate Bench of the Pune Tribunal in the following cases: i. Lake Town Co-operative Housing Society Ltd. Vs. ITO, ITA No. 88/PUN/2024, dated 07.05.2024. ii. Vivekvardhani NagariSahakari Patsanstha Ltd. Vs. ITO, ITA No.888/PUN/2024, dated 05.08.2024. iii. Talegaon Nagari Sahakari Patsanstha Ltd. Vs. ITO, Pune....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ever, the Ld. CIT(A) completely brushed off the above submissions of the assessee and confirmed the addition made by the Ld. AO. In our considered view, the said claim of the assessee finds due support from the decision of Co-ordinate Bench of the Pune Tribunal in the case of Banganga Nagri Sah. Patsanstha Ltd. Vs. ITO, ITA No. 873/PUN/2014, dated 31.03.2016 wherein the Tribunal under the similar set of facts as that of the assessee in the present case has allowed the deduction claimed u/s 80P(2)(c)(ii) of the Act in respect of incomes earned from certain allied activities viz. locker rent, ambulance rent, commission on collection of MSEB bills and health club carried out by the co-operative society. 7.2 As regards addition of Rs. 90,000/-....