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2018 (12) TMI 1313 - AT - Income TaxDenial exemption u/s 80P(2)(a)(i)/(ii) and 80P(2)(d) - Held that:- Assessee is a cooperative society registered under Gujarat Co-operative Societies Act, 1961 and engaged in providing credit facilities to its members. High Court in the case of State Bank of India Co-operative Society (2016 (7) TMI 516 - GUJARAT HIGH COURT) has held that interest earned from investment made in bank by a cooperative society engaged in providing credit facilities to its members, is not eligible for deduction under section 80P(2). Tribunal in earlier occasions on similar issue has taken a consistent view by following above judgment of the Hon’ble jurisdictional High Court. Since orders of the Revenue authorities are in accordance with judgment of the Hon’ble jurisdictional High Court cited supra, no interfere is called for in the impugned orders, which we confirm. However, any expenditure incurred by the assessee for earning such income could be allowed to it, if not already allowed. AO has to determine the net interest income as well as misc. income earned by the assessee, and only thereafter that income has to be excluded from the admissibility of deduction under section 80P(2) of the Act. AO is also directed to consider allowance of deduction under section 80P(2)(c)(ii) of the Act in accordance with law. - Decided partly in favour of assessee.
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