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2023 (6) TMI 437 - AT - Income TaxDeduction u/s. 80P - interest income earned from nominal members - assessee is a cooperative credit society engaged in the business of providing credits facilities to its members - AO did not allow the deduction on the net interest income which action came to be countenanced in the first appeal - HELD THAT:- It is seen that the extant issue of granting deduction on the interest income received from nominal members is no more res integra in view of several orders passed by the Tribunal holding the same in favour of the assessee. The Tribunal in The Vainganga Nagari Sahakari Pat Sanstha Ltd. [2021 (6) TMI 758 - ITAT NAGPUR] has decided the issue in favour of the assessee held that definition of `member’ given in section 2(19) of the Maharashtra Act takes within its sweep even a nominal member and there is no distinction between a duly registered member and nominal member. In view of the above discussion, we overturn the impugned order and direct to grant deduction u/s 80P(2)(a)(i), as claimed by the assessee. Non-granting of deduction u/s. 80P in respect of Electricity Commission - assessee carried out the activity of collection of electricity bills from customers and then depositing it with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) - HELD THAT:- It is seen that this issue has been decided in favour of the assessee in Bhagyalaxmi Nagri Sahakari Patsanstha Meryadit [2022 (3) TMI 772 - ITAT PUNE] the activity of earning commission from collection of bills relating to MSEDCL has been held as eligible business activity and resultantly allowed granted deduction u/s. 80P. DR fairly conceded the position but relied on the impugned orders on this score. Commission income on collection of bills from MSEDCL has been made eligible for deduction u/s. 80P(2)(a) on the ground of the same being in the nature of business activity, allow the assessee’s claim in respect of similar commission income - Thus allow deduction on such commission income.
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