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2022 (7) TMI 679 - AT - Income TaxDeduction u/s.80P(2)(a)(i) - AO noted that the assessee’s society is not only advancing loans to members but also advancing loans to associated members in contravention of the provisions of section 80P(2)(a)(i) - According to AO, the assessee co-operative society is doing finance business, therefore, the AO disallowed the claim of deduction u/s.80P(2)(a)(i) - HELD THAT:- Admitted facts are that the assessee is a co-operative society engaged in the business of development of agricultural activities, milk products etc., and also financing to its members i.e., accepting and providing loans to its members, whether associate members or members. We noted that the AO disallowed the claim of deduction on the ground that the assessee had lent money to the members who are associate members and have received the interest at par with the commercial banks. According to AO, the assessee is not eligible for claim of deduction u/s.80P(2)(a)(i) of the Act and according to him, the assessee’s activities are purely in the nature of commercial banking activity and therefore hit by provisions of section 80P(4). As the issue is squarely covered and the facts are identical to the above referred case laws, respectfully following the Hon’ble Supreme Court decision in the case of Mavilayi Service Cooperative Bank Limited [2021 (1) TMI 488 - SUPREME COURT], Hon’ble Madras High Court decision in the assessee’s own case [2021 (1) TMI 1087 - MADRAS HIGH COURT] & S-1308, Ammapet Primary Agricultural Co-operative Bank Ltd., 2015 (9) TMI 1540 - ITAT CHENNAI]and the Co-ordinate Bench decision in the case of Tamilnadu Co-operative State Agriculture and Rural Development Bank Limited [2022 (6) TMI 770 - ITAT CHENNAI] we dismiss the appeal of Revenue. Consequently, all the three appeals of Revenue are dismissed.
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