Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1594 - AT - Income TaxDeduction under section 80P(2)(a)(i) denied - Held that:- So far as activity of doing the insurance of its members-creditors is concerned, the same can be safely said to be connected to the business activity of providing loan to the members of the society. Moreover, the concept of mutuality will also be applicable to such commission income and policy charges, etc. However, the commission income and policy charges received from non-members though the borrowers of the assessee society will neither fall within the purview of business activity of providing credit facility to its members nor the same would fall within the scope of mutuality. Hence, in view of our above discussion, we do not find any infirmity in the order of the learned CIT(A) in holding that the interest income, commission income and policy charges, etc., received from non-members will not be eligible for deduction under section 80P. - As A.R. for the assessee has submitted that the assessee society has incurred some expenditure in the course of earning interest income and from doing the insurance of non-members-borrowers and that the expenditure so incurred is required to be deducted and only the net income is liable to be taxed, we find force in this contention of the assessee. Only the net income from non-members is required to be taxed. The Assessing Officer is, therefore, directed to re-compute the taxable income accordingly. - Decided against assessee.
|