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2022 (5) TMI 371 - AT - Income TaxDeduction u/s 80P - whether since assessee was not a bank, whether it would be entitled to deduction under section 80P(2)(a)(i) on its income from providing credit facilities to its members? - HELD THAT:- As decided in EKTA CO-OP CREDIT SOCIETY LTD. [2018 (1) TMI 1244 - GUJARAT HIGH COURT] held that section 80P(4) would not be applicable to cooperative credit society and assessee would be entitled to deduction under section 80P(2)(a)(i) on its income from providing credit facilities to its members. Therefore, it is seen that this caselaw cited by the assessee is not relevant to the facts and issues before us. In the case of Jafari Momin Vikas Co-op. Credit Society Ltd [2014 (2) TMI 28 - GUJARAT HIGH COURT] the Gujarat High Court held that where assessee was not a credit co-operative bank but a credit co-operative society, its claim for deduction under section 80P(2)(a)(i) could not be rejected by invoking exclusion clause of subsection (4) of section 80P of the Act. Therefore, it is evident that the judicial precedent cited by the assessee in his grounds of appeal are not relevant to the facts of the case. In the instant facts, however, we note that there is no clarity as to how much interest has been earned by the assessee from deposits made in nationalised bank and how much interest has been earned from deposits made in cooperative bank. Having held that interest earned by the assessee on deposits held with nationalised banks are not eligible for deduction under section 80P of the Act, though only the net income would be taxable after allowing for administrative and other expenses incurred for earning such interest income and also that interest earned by the assessee on deposits made with cooperative banks are eligible for deduction under section 80 P(2)(d) of the Act, we are restoring the file to Learned Assessing Officer to ascertain how much interest pertains to interest earned from nationalised bank and the portion of interest relatable to cooperative bank, and then tax the same in accordance with decision above.
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