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2016 (1) TMI 409 - AT - Income TaxClaim for deduction under section 80(P)(2)(a)(i) - Held that:- As found by the ld. CIT(Appeals), from the perusal of the objects of the assessee-Society as extracted by him in the impugned order from the Bye-Laws, the assessee-Society is not allowed to accept deposits of money from Public for the purpose of lending or investment. As further found by him, the entire transactions of accepting deposits and giving loans have been done by the assessee-Society with its members only and there are no such transactions done by it with nonmembers. He has also found that the assessee-Society was not registered under the Banking Regulation Act, 1949 and it was registered under the West Bengal Cooperative Societies Act , 1983. On the basis of all these findings of fact recorded by him, the ld. CIT(Appeals) has held that the assessee-Society is not a Cooperative Bank, which is covered by section 80P(4) and it is, therefore, eligible for deduction under section 80P(2)(a)(i). At the time of hearing before us, ld. D.R. has not been able to rebut or controvert any of the findings of facts recorded by the ld. CIT(Appeals). He has also not been able to cite any authority where a different or contrary view is taken on this issue, which is in favour of the Revenue. We, therefore, find no justifiable reason to interfere with the impugned order of the ld. CIT(Appeals) allowing the claim of the assessee for deduction under section 80P(2)(a)(i) - Decided against revenue Direction to treat the interest income earned by the assessee on its investment as business income eligible for deduction under section 80P(2)(a)(i) by CIT(A) - Held that:- a perusal of the relevant balance-sheet of the assessee as on 31.03.2009 (copy of which at pages 67 & 68 of the paper book), shows that the total investment made by the assessee-Society was ₹ 22.08 crores as on 31.03.2009, whereas the Reserves & Surplus and Prof it & Loss A/c. balance as on the said date were ₹ 1.76 crores and 1.73 crores respectively. The major amount appearing on the liability side of the balance-sheet as on 31.03.2009 was deposit and other account aggregating to ₹ 28.89 crores, which comprised of various funds and deposits. Keeping in view these facts and figures, we are of the view that the issue as to whether the relevant investment is made by the assessee out of its own surplus funds or out of the amount payable to its members, which represent its liability, requires verification in order to determine the exact head of income under which the interest on such investment is chargeable to tax in the hands of the assessee by applying the relevant case laws. We, therefore, set aside the impugned order of the ld. CIT(Appeals) on this issue and restore the matter to the f i le of the Assessing Officer for deciding the same afresh - Decided in favour of revenue for statistical purposes.
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