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2023 (6) TMI 391 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - claim of deduction denied for the reason that assessee was primarily dealing with non-members - HELD THAT:- In the light of the judgment in the case of Mavilayi Service Co-operative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT] it is clear that only profits attributable to non-members alone would not be entitled to deduction under section 80P(2)(a)(i) of the Act. Thereby meaning proportionate deduction is to be allowed in respect of the income arising out of business with the members of the assessee society. In the light of the above said judgment restore the issue to the AO to determine the proportionate deduction under section 80P(2)(a)(i) of the Act with regard to the income earned from the assessee’s dealings with its regular members. Interest income received from Cooperative Banks / Scheduled Banks - whether it is income from business or income from other sources? - HELD THAT:- Assessee is not entitled to the claim of deduction either under section 80P(2)(a)(i) or 80P(2)(d) of the Act.Judgment of the Hon’ble jurisdictional High Court in the case of Totagars Co-operative Sale Society [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] relied upon. Appeal filed by the assessee is partly allowed for statistical purposes.
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