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2014 (1) TMI 1927 - AT - Income TaxDeduction u/s 80P - whether co-operative society providing credit facilities to its members covered in sub-section (4) of section 80P or not? - assessee is in the business of providing credit facility to its member and accepting the deposits from the member - HELD THAT:- As decided in M/S. JAFARI MOMIN VIKAS CO-OP CREDIT SOCIETY LTD. [2014 (1) TMI 481 - ITAT AHMEDABAD] it is clear that the income of the assessee is eligible for deduction under Section 80P(2)(a)(i) since the only activity of the assessee is to provide credit facility to the members and therefore the interest earned from short term deposits is business income and is eligible for deduction under Section 80P(2)(a)(i) and no portion thereof can be taxed under Section 56 as income from other sources - Decided against revenue. Addition made on account of building fund in the income of the assessee but deduction u/s. 80P was not allowed by considering the Supreme Court in the case of Vijaya Bank [2010 (4) TMI 46 - SUPREME COURT] but in that case disallowance was made on account of doubtful debt and to that extent assessee-bank income increased. But in all cases the additions were made on account of building funds had been debited in the assessee’s income generated from providing credit facility to its members. Therefore it is equally eligible for deduction u/s. 80P thus were allowed the appeal of the assessee.
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