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2015 (6) TMI 833 - ITAT MUMBAIExemption from payment of income tax on interest earned - principles of mutuality - Held that:- The business activities predominantly involve banking and financing activities, which has resulted in substantial profits and includes interest income. The Hon'ble Supreme Court in the case of Bangalore Club Vs CIT reported at [2013 (1) TMI 343 - SUPREME COURT ], has held that the concept of mutuality shall not be extended to the interest incomes earned by a mutual association or a society. Accordingly, it was held that the interest incomes are exigible to the tax in the hands of the recipient. As observed, in this case, the appellant’s income predominantly consists of interest income and profits from financing activities. In view of these distinguishing factors, this ground of appeal is hereby dismissed.- Decided against assessee. Eligibility for deduction under section 80P(2)(a) - Held that:- The assessee shall place the bye-laws and other documentary evidences before the AO to support its claim that it was eligible for deduction under section 80P of the Act. Assessee has to prove that it has undertaken primary level agricultural development activities. Both the parties admitted that the issue stands covered by the decision in the case of Kerala Sate Co-operative Agricultural Rural Development Bank Ltd.[2011 (3) TMI 1011 - ITAT COCHIN ]. In line with the view taken therein we set aside the matter to the file of the AO with a direction to him to consider as to whether the assessee is entitled to deduction under section 80P of the Act. - Decided in favour of assessee for statistical purposes.
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