Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 683 - AT - Income TaxDeletion made u/s 80(2)(a)(i) of the Act – Scope of deduction - Held that:- Whether co-operative society providing credit facilities to its members covered in sub-section (4) of section 80P or not – Held that:- The assessee is in the business of providing credit facility to its member and accepting the deposits from the member - The decision in Commissioner of Income Tax Versus Jafari Momin Vikas Co-Op Credit Society Ltd. [2014 (2) TMI 28 - GUJARAT HIGH COURT] followed - the income of the assessee is eligible for deduction under Section 80P(2)(a)(i) since the only activity of the assessee is to provide credit facility to the members and therefore the interest earned from short term deposits is business income and is eligible for deduction under Section 80P(2)(a)(i) and no portion thereof can be taxed under Section 56 as income from other sources – Decided against Revenue. Disallowance made on account of doubtful debt – Held that:- The decision in M/s. Vijaya Bank Versus Commissioner of Income Tax & Anr. [2010 (4) TMI 46 - SUPREME COURT] followed - Disallowance was made on account of doubtful debt and to that extent assessee-bank income increased - the additions were made on account of building funds had been debited in the assessee’s income generated from providing credit facility to its members – thus, it is equally eligible for deduction u/s. 80P thus were allowed the appeal of the assessee – Decided in favour of Assessee.
|