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2017 (5) TMI 404 - AT - Income TaxDeduction under section 80P(2)(a)(i) - AO held the society to be a housing society and hence he has denied the deduction under section 80P(2)(a)(i) - Held that:- In this case it is evident that apart from providing credit facilities to its members the co-operative society is also engaged in activities of a housing co-operative society. Hence to the extent the profit of the assessee is attributable to the activity of providing credit facilities to its members the same be qualify for deduction under section 80P(2)(a)(i). The assessee's plea that in the past it has been provided deduction on the total income under section 80P(2)(a)(i) on the same set of facts cannot come to the rescue of the assessee. It is settled law from the honourable Supreme Court that a mistake cannot be perpetuated. As per the facts of the case and the mandate of law it is clear that the assessee is engaged in activities of providing credit facility as well as providing housing facility. Hence the assessee's activities which relate to the provisions of section 80P(2)(a) will get hundred per cent. deduction. In this regard it is noted that the assessee's books of account have not been maintained separately so as to depict profits attributable to both the segments. In this regard both the counsel agreed that the issue can be remitted to the file of the Assessing Officer and the assessee will co-operate in arriving at the profit attributable to both the segments. Accordingly in the interest of justice the issue of arriving at profits attributable to both the segments is remitted to the Assessing Officer. The Assessing Officer shall arrive at the figure of profits after giving the assessee an opportunity of being heard. See Chhattisgad Urban Credit Sahakari Sanstha Maryadit v. ITO [2015 (5) TMI 1088 - ITAT NAGPUR] Another issue on which the assessee has filed appeal is with regard to the learned Commissioner of Income-tax Appeals's direction that the assessee would not be eligible for deduction on interest income as it is not co-operative bank.
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