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2023 (9) TMI 592 - ITAT INDOREDeduction u/s 80P - assessee is a credit cooperative society and claim to have engaged in the providing credit facilities to the members of the society - assessee claimed deduction u/s 80P on the entire income of the assessee including interest income - AO denied this claim u/s 80P for want of any explanation - HELD THAT:- As per the provisions of section 80P the business income of the Co-operative Society is eligible for deduction u/s 80P - In case of credit Cooperative Society engaged in providing credit facilities to its members the interest income from the credit facility provided to the members would be a regular business income of the society eligible for deduction u/s 80P. As per the section 80P(2)(d) the interest received on the deposit with other cooperative society is also eligible for deduction u/s 80P of the Act. If the deposit is made with a Cooperative Bank then the said bank would be considered as a Cooperative Society for the purpose of section 80P(2)(d) so far as the income is eligible for deduction u/s 80P(1) of the Act. AO has made the addition of the entire interest income has shown in profit and loss account without even considering the facts as to how much interest income received by the assessee from its members. The dispute may be regarding eligibility of deduction u/s 80P in respect of the interest income earned from the deposit made in the Schedule Banks or other than members. Therefore, the interest income received from the members against the credit facility provided by the assessee society is eligible for deduction u/s 80P(2)(a)(i). As the interest received from its investment from other cooperative society is also eligible for deduction under section 80P(2)(d) - Since neither the AO nor the CIT(A) has examined the relevant facts regarding the amount of interest received from the members for providing credit facility being a regular business income of the assessee as well as the interest income received from other then members of the assessee society. Therefore we set aside the impugned order of CIT(A) and matter is remanded to the record of the AO for deciding the same afresh - Appeal of assessee is allowed for statistical purposes.
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