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2015 (4) TMI 1135 - AT - Income TaxEligibility of deduction under section 80P(2(a)(i) - denial of claim on interest income towards jewel loan and other loan on the ground that the purpose of loan issued was for commercial activities and not for agricultural activities - Held that:- We uphold the orders of the Commissioner of Income Tax (Appeals) in allowing the claim of the assessee under section 80P(2a)(i) of the Act on the interest income on jewel loan and other loans and reject the grounds raised by the Revenue in all these appeals. AS decided in ITO Vs. M/s.Veerakeralam Primary Agricultural Co-operative Credit Society [2015 (7) TMI 557 - ITAT CHENNAI] the assessee is not a co-operative bank. The activities in the nature of accepting deposits, advancing loans etc., carried on by the assessee are confined to its members only and that too in a particular geographical area. The activities of the assessee are not regulated by the RBI or the provisions of the Banking Regulation Act. Thus, in view of the above stated facts and various decisions considered above, we do not find any infirmity in the order of the CIT(Appeals). - Decided in favour of assessee
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