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2017 (3) TMI 1746 - ITAT MUMBAIDeduction u/s. 80P - assessee carries on banking and other business in the name of a credit co-operative society - HELD THAT:- The assessee is a registered Cooperative Credit society and is providing facility to its members to deposit, therefore sufficient interest is paid. In addition to that the assessee has also guaranteeing loans/advances in which interest is charged from its members and apart from that the assessee is also getting interest from FDs. The assessee is not guaranteeing any credit facility to any other persons except the members and this is eligible for deduction u/s 80P of the Act. Interest income received by the appellant - Income From Other Sources OR Business Income - HELD THAT:- CIT(A) has rightly conclude that the interest has been received either from a Scheduled bank or Co-operative Bank and no interest income has been received by the assessee from its investment in a co-operative society. The Ld. CIT(A) has rightly followed the mandate given by Hon’ble Supreme Court in case of The Totgars Co-operative Sale Society Ltd.[2010 (2) TMI 3 - SUPREME COURT] wherein it was held that the interest received by a co-operative society from investment of its surplus funds is assessable under the head “income from other sources” and deduction u/s 80P is not available in respect of such interest and dividend income. Therefore in the present case the disallowance of deduction u/s 80P was rightly upheld to that extent. Commission Income - assessment as ‘Business Income’- HELD THAT:- We find that the revenue has not carried out the required verification and the CIT(A) has only mentioned that these income are credited to the profit and loss account of the assessee and it is not connected with the banking/credit giving facilities business, therefore in these circumstances we set aside these grounds to the file of the AO for carrying out detail verification of these grounds. It is needless to mention that Assessing Officer would provide reasonable opportunity of being heard to the assessee. Therefore, these grounds are allowed for statistical purposes.
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