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2018 (12) TMI 1915 - AT - Income TaxEntitlement to deduction u/s 80P(2)(a)(i) - nature of business of assessee - petitioner in appeal is a co-operative society engaged exclusively in providing credit facilities to its members - HELD THAT:- In order to determine the nature of business as to whether the same is of a cooperative bank or not, certificate from RBI about the nature of business of the assessee is most important and hence, we feel it proper to restore back the matter to the file of AO for fresh decision after providing adequate opportunity to the assessee to produce such certificate from RBI regarding the nature of business of the assessee in reasonable time. As noted in CITIZEN COOPERATIVE SOCIETY LIMITED [2017 (8) TMI 536 - SUPREME COURT] the assessee was engaged in the activity of granting loans to general public as well. This was also noted in the same Para that most of the business of the assessee was with the second category of persons who were noted to be nominal members and from them, the assessee was getting deposits which were kept in Fixed Deposits with a motive to earn maximum returns and a portion of these deposits was utilized to advance gold loans etc. to members of the first category i.e. ordinary members. Hence, even if it is found that assessee is not a co-operative bank, then also, this factual aspect of the present case should be compared and thereafter final decision should be made. Appeal filed by the assessee is allowed for statistical purposes.
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