Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2007 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (3) TMI 256 - HC - Income TaxExemption u/s 80P(2)(a)(i) - Assessee is a co-operative society engaged in the business of banking. The assessee claimed the exemption under section 80P(2) of the Income-tax Act on the ground that it related to banking activities. - Section 80P of the Income-tax Act, 1961, deals with the deduction in respect of income of co-operative societies. Sub clause (i) of clause (a) of sub-section (2) of section 80P provides for deduction in respect of- income of co-operative societies which are engaged in carrying on the business of banking or providing credit facilities to its members. The said sub-section clearly provides that only the banking business is exempted and not any other income is exempted. In the present case also, the assessee derived the income from the house property and not from the banking business, therefore, the assessee cannot be exempted from the income derived by the house property. - The Income-tax Officer in this regard has also rightly recorded the finding that scrutiny of the details filed shows that the assessee received the income from house property. This income does not fall under the head “Income from business of banking” and as such it is liable to tax under the head “Income from house property”.
|