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2015 (1) TMI 867 - ITAT COCHINDenial of deduction u/s. 80P(4) - Held that:- The word "activity" is wider than the word "business". It connotes a specified form of supervised action or 0field of action. Read in the context of the profit earning activity of a co-operative society, it means the corporate activity of the society, that is to say, whether or not they amount to a business, trade or profession in the ordinary sense. Clause (c) of section 80P(2) is intended to cover receipts from sources other than the actual conduct of the business but attributable to an activity which results in profits and gains. Letting out of surplus space in the building owned and used by the assessee is not such an activity falling under clause (c). The rent thus received by the assessee is not eligible for the exemption provided thereunder. In this view, the Appellate Tribunal was justified in rejecting the assessee’s claim. Assessee is not entitled for deduction u/s. 80P of the Act. - Decided against assessee. Deduction u/s. 36(1)(viia) - provisions made for assets classified as doubtful assets or loss assets - Held that:- Only with reference to the assessment year in question appellants/assessees have created provision for bad and doubtful debts in the books of accounts. So far as this issue is concerned, opinion of the assessing officer and two appellate authorities is justified and we need not interfere with the opinion of the authorities in restricting deductions only to 7.5% of the total income as provided under sub-clause (viia) of Section 36(1). CIT(A) is justified in giving a finding that the assessee’s claim for deduction u/s. 36(1)(vii) (a) is to be considered subject to statutory limit and also the Ld. AR has not been able to show as to how this section is not applicable to the assessee’s case. Being so, we decline to interfere with the order of the CIT(A) on this issue. Accordingly, this ground of the assessee is dismissed.- Decided against assessee.
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