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2019 (4) TMI 505 - AT - Income TaxDeduction u/s 80(P)(2) - Interest income earned by the assessee from the deposits made with SBI, Neyveli - addition made towards interest income earned by the assessee with Cuddalore District Central Co-operative Bank - HELD THAT:- CIT(A) has held that when the assessee society parked its funds temporarily in another co-operative society and earned interest which was ultimately used for providing credit to members the activities are related and are in the spirit of encouraging the co-operative sector. Since the Department also accepted the observations of the CIT(A) and not disputed in appeal before the Tribunal, we find no infirmity in the order passed by the CIT(A) on this issue. Whereas, since the assessee is not entitled to claim deduction on the interest income earned from the investments made in the scheduled bank, the CIT(A) has rightly confirmed the addition of interest income earned from SBI, Neyveli. Thus, the ground raised by assessee stands dismissed for the assessment years under consideration. Deduction under section 80(P)(2)(a)(i) - Held that:- Assessee society is not granting any loan to general public and only extending credit facility to its members. Thus, we find no reason to interfere with the order passed by the ld. CIT(A). Hence, the ground raised by the Revenue stands dismissed for both the assessment years under consideration.
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