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2022 (2) TMI 1275 - AT - Income TaxRevision u/s 263 - deduction u/s 80P - Pr. CIT has held that the benefit of Section 80P is only admissible to the extent of business activity with members,thus, the assessee was not entitled to deduction under section 80P(2)(d) in respect of investment made in HDFC Bank - assessee, a co-op credit society, was engaged in providing credit facilities to its members. The assessee had surplus funds which it invested in deposits with Commercial Banks - whether the said interest earned on the said deposits was “business profits” and eligible for deduction u/s 80P(2)(a)(i)? - HELD THAT:- On identical facts, in the case of “the NBI Employees Co-operative Non- Agricultural Thrift & Credit Society Ltd.[2022 (2) TMI 1274 - ITAT AMRITSAR] we have discussed the issue at length and decided the same in favour of department, following the Hon’ble Jurisdictional Punjab and Haryana High Court, in the case M/s Punjab State Co-operative Federation of Housing Building Societies Ltd.2011 (5) TMI 219 - PUNJAB AND HARYANA HIGH COURT] wherein the Hon’ble High Court, while following the judgment of Hon’ble Supreme Court, in the case of The Totgars Cooperative Sale Society Ltd. [2010 (2) TMI 3 - SUPREME COURT], have held that interest received by the assessee from Commercial banks was not covered by Section 80P(2)(a)(i) of the Act and was taxable under section 56, being income from other sources. We held such interest income is to be charged to Tax as income from other sources in the context of the assessee due to the non-availability of deduction u/s.80P(2)(d) on such amount. We find no infirmity in the order of the Pr. CIT passed U/s 263 of the Act by holding the assessment order as prejudicial to the interest of revenue because the interest income was charged to Tax as income from other sources in the context of the assessee due to the non-availability of deduction u/s.80P(2)(d) on such amount. - Decided against assessee.
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