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2014 (2) TMI 516 - AT - Income TaxDisallowance of claim u/s 80(P)(a)(i) of the Act – Held that:- The decision in Totgars' Co-operative Sale Society Ltd. vs. ITO [2010 (2) TMI 3 - SUPREME COURT] followed - The only interest which is received by the Cooperative Credit Society from its members for providing credit facilities to them is eligible for deduction u/s 80P(2)(a)(i) of the Act - the interest income arising from various sources and it would come in the category of "Income from other sources" – thus, the interest income would be taxable u/s 56 of the Act - interest income do not fall within the meaning of expression "Profits and Gains of Business" - such business income cannot be said to be attributable to the activities of the Co-op Credit Society, namely, carrying on the business of providing credit facilities to its member or marketing facilities to its members - thus, the appellant is not eligible for deduction u/s 80P(2)(a)(i) in respect of interest – the order of the CIT(A) upheld – Decided against Assessee. Setting off of expenditure u/s 57 of the Act – Bank Interest – Held that:- A statement has been submitted showing interest income and interest expenses according to which proportionate interest should have been disallowed - Since these details were not before lower authorities – thus, the matter is remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee.
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