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2019 (12) TMI 1235 - AT - Income TaxDeduction u/s 80P - Deduction u/s 80P of the Act is not allowed on the ground that the expenses claimed by the assessee are not allowable - HELD THAT:- The coordinate bench of this Tribunal has decided the issue related to allowance of deduction u/s 80P of the Act and the expenditure disallowed by the A.O. whether this would qualify for deduction u/s 80P of the Act. A bare reading of provision of section 80P(2) of the Act makes it clear that the deduction would be available in respect of the profit & gains of business attributable to any one or more of search activities, which is prescribed u/s 80P(2) of the Act. As per the assessee, the assessee is providing credit facilities to its members. Therefore, it would qualify for claim of deduction u/s 80P of the Act. The coordinate bench under the identical facts has allowed deduction u/s 80P of the Act in respect of the activity similar or same, which is being undertaken by the assessee society. Now the issue would be whether the disallowances made in respect of bad debts and commission payment claimed by the assessee would qualify for deduction u/s 80P of the Act or not? In respect of the bad debt, the assessee is required to demonstrate that the debt which is claimed is in the nature of profit & gains and business attributable to such activity. In the present case, the assessee had made provision for bad debt. If the assessee had not done this provision, this amount would have not been deducted from the profit & loss account. Therefore, in my considered view, this amount is certainly attributable to the profit & gains of the assessee society. Further, disallowance of payment of commission. The commission is claimed as business expenditure, deducted from the profit & gains account. Therefore, this would also be in the nature of profit & gains of the assessee society. Therefore, in the light of the decision of the coordinate bench rendered in the case of ACIT Circle-4 Vs. Buldana Urban Co-operative Credit Society Ltd. [2013 (12) TMI 237 - ITAT NAGPUR] the assessee is entitled for benefit of deduction u/s 80P of the Act. I therefore, direct the A.O. to grant deduction u/s 80P of the Act to the assessee.
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