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2016 (1) TMI 1455 - ITAT MUMBAIDeduction u/s 80P in respect of interest received from the schedule bank - HELD THAT:- As decided on QUEPEM URBAN CO-OPERATIVE CREDIT SOCIETY LTD. [2015 (6) TMI 573 - BOMBAY HIGH COURT] such lending activities do not constitute banking activities as the same are transacted between the cooperative society and the members of the society. Since, no public is involved the definition of “banking‟ does not cover such activities. As such, there is no Reserve Bank of India‟s approval for conducting such banking activities in this case - From the above, Ld Counsel for the assessee demonstrated that the members of the Credit Cooperative Society do not constitute “public” and there is no depositing, withdrawal by cheque or draft etc. - Decided against revenue. Taxing “Commission income‟ under the head “income from other sources" - assessee demonstrated that there is no objection if the said amount is taxed as per the provisions of clause (c) to section 80P(2) - HELD THAT:- We remand this issue to the file of the AO for deciding the issue as per the said provisions of clause (c) of section 80P(2) of the Act, which covers the issue under consideration. We order accordingly. AO is directed to give deduction of ₹ 50,000/- as per the provisions of section 80P(2)(c)(ii) of the Act and allow a reasonable opportunity of being heard to the assessee as per the principles of natural justice. Accordingly, the relevant ground raised by the assessee is allowed for statistical purposes.
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