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2015 (3) TMI 109 - HC - Income TaxEntitlement to deduction u/s 80P(2)(a) - commission earned on electricity bill - Held that:- The facility of collection of bills provided by the bank is found to qualify as banking activity and the commission has been thus allowed to be deducted under Section 80P(2)(a) of the said Act as held in CIT(A) V/S Ahmednagar District Central Co-operative Bank Ltd., Osmanabad District Central Co-operative Bank Ltd. and Latur District Central Co-operative Bank Ltd. [2003 (7) TMI 50 - BOMBAY High Court ] - Decided in favour of assessee. Commission derived from Cotton Hundi business - Held that:- The cheques issued by the State Government to the cotton growing farmers as price of cotton purchased are immediately honoured by the assessee and the State Government then reimburses the assessee after some time. It is, therefore, obvious that the funds of the bank are used in the process and for such use the State Government is compensating it by paying the commission. Considering the law looked into supra, we find that the said commission also qualifies for such deduction. See CIT vs Nawanshahar Central Coop. Bank Ltd [2012 (9) TMI 404 - SUPREME COURT] - Decided in favour of assessee.
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