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2015 (9) TMI 1403 - AT - Income TaxEntitlement to benefit of Section 80P - interest income received on fixed deposit kept with Nationalized bank, commission income and other income - Held that:- The assessee society’s main object is to give credit facilities to its members from the funds received from the members by way of collection of deposits from its members in the common fund and such common fund is deployed in the form of granting loan to the members of the society. As the co-op. credit society is engaged in the money lending business it has to maintain certain liquid funds as per various rules and regulations and also to meet the minimum requirement of the funds. As a measure of safety minimum liquid and convenience of fund movement the appellant society had to keep its surplus liquid funds with different banks including nationalized banks. Therefore, in view of above discussion and relying on the decision of Tumkur Merchants Souharda Credit Co-op. Ltd.(2015 (2) TMI 995 - KARNATAKA HIGH COURT ), the assessee is eligible for deduction under section 80P(2)(a)(i) of the Act; however, rent income at ₹ 18,600, commission income at ₹ 13,701, other income ₹ 400 and incometax refund of ₹ 13,271 totalling to ₹ 45,542/- is not eligible for deduction under section 80P(2)(a)(i) of the Act - Decided partly in favour of assessee
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