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2014 (5) TMI 1099 - ITAT PUNEEligibility for deduction u/s 80P(2)(a)(i) - Held that:- The income earned by co-operative society, engaged in the business of providing credit facility to its members is exempt. The assessee has earned income from facilities provided to its members. The fact that the income earned from members from loans advanced, which were partially secured out of borrowing from NDCC Bank, does not make any difference. Nowhere, it has been provided in the above section that in order to earn income from providing credit facilities to its members, amount used for giving credit facilities to its members should not be from borrowing from cooperative banks. In view of above, the CIT(A) was justified in observing that the assessee is eligible for deduction u/s 80P(2)(a)(i) - Decided in favour of assessee Addition on account of income from cash collection counter - Held that:- the business activity of credit co-operative society and co-operative banks are similar in respect of accepting deposits, providing credit facilities and also carrying on activity of electricity bills, telephone bills collection centre. The Hon’ble Bombay High Court in the case of CIT Vs. Ahmednagar District Central Co-operative Bank Ltd. (2003 (7) TMI 50 - BOMBAY High Court ) has laid down that the activity of collecting bills, dues and charges for and on behalf of government, local authority, MTNL, BEST, MSEB, etc. is akin to banking activity and is eligible for deduction u/s. 80P(2)(a)(i). In view of above, the CIT(A) was justified in directing the Assessing Officer to allow the deduction u/s. 80P(2)(a)(i) in respect of the said income - Decided in favour of assessee
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