TaxTMI 
TaxTMI 
2025 (2) TMI 1800
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....ment year (AY) 2017-18. 2. The grounds of appeal raised by the assessee are as under: "1. That the CIT(A) erred in confirming the disallowance of deduction u/s 80P(2)(d)(i) of Rs. 2,95,564/- being identical income of locker rent received by providing locker facility to member only and holding the same to be not income from business of banking as the assessee society is not holding banking license to operate locker. 2. Alternative, CIT(A) could have granted the deduction of expenses of Rs. 2,63,118/- claimed against the locker rent income of Rs. 2,95,564/-. 3. The appellant craves leave to add, amend, alter, vary and/or withdraw any or all the above grounds of Appeal." 3. Brief facts of the case are that the ....
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....gaged in the business of banking but was engaged in providing credit facilities to its members, which does not include providing locker facility. The income earned Rs. 2,95,564/- cannot be allowed as deduction u/s 80P(2)(a)(i) of the Act and the same was added to the total income of the assessee. 4. Aggrieved by the order of AO, the assessee filed appeal before the CIT(A). The CIT(A) observed that the appellant-society is a co-operative society and it is not at all having banking license and, therefore, renting out of locker cannot be termed as income earned from banking activities u/s 80P(2)(a)(i) of the Act. In absence of banking license, the appellant cannot be assumed to carry out banking functions of renting out a locker. However, t....
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....ities are as under: (a) co-operative society engaged in carrying on business of banking facilities to its members or (b) co-operative society engaged in providing credit facilities to its members. Both the activities can be carried on by the co-operative society for its members. Therefore, where a co-operative society is engaged in carrying on business of banking facilities or providing credit facilities to its members or the income which relates to the business of banking facilities to its members or providing credit facilities to its members will be eligible for deduction u/s 80P(2)(a)(i). The CIT(A) vide para 6.13 discussed this issue and stated that the contention of the appellant was not found to be acceptable as the assessee is cooper....
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....ng business and deductible u/s 80P(2)(a)(i) of the Act. However, urban cooperative credit society like the assessee are not banks and the primary business of such credit society is to grant credit facilities to its members. The ld. AR submitted that providing locker facility is an incidental activity which was approved by the Bye-law of the society. However, copy of such Bye-law has not been furnished. Therefore, we do not find any infirmity in the order of CIT(A) and uphold the decision of CIT(A) not to allow deduction u/s 80P(2)(a)(i) of the Act in respect of the locker rent of Rs. 2,95,564/-. 7.1 The ld. AR of the assessee has requested to consider the alternative claim of expenditure of Rs. 2,63,117/-. He submitted a working of deduc....