Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1475 - ITAT VISAKHAPATNAMClaiming deduction u/s 80P - Held that:- To avail benefit under section 80P(2)(a)(i), the underlying principle is that the assessee organization has to carry out its activities on the principle of mutuality. Once, the assessee failed to carry its activities on the above principle, the assessee is not entitled to get benefit under section 80P of the Act, as it will come within the purview of section 80P(4) after 01/04/2007. In the present case, it is very clear that the assessee is carrying its business activities with members and non-members. Once non-members entered into the organization, the principles of mutuality will automatically exists. Insofar as license of RBI is concerned, it is not a basis for considering the assessee is eligible for section 80P or not, the only basis is whether the assessee is carrying its activities on the principles of mutuality or not. In the present case, by considering the objects of the assessee and also activities carried out by the assessee, it cannot be said that the assessee is working on the basis of principle of mutuality and therefore not eligible for benefit under section 80P of the Act. The assessee has also failed to fulfill the conditions as laid down in sub-clause (4) of section 80P to avail the benefit of section 80P of the Act. - Decided against assessee Accrual of interest - Disallowance of overdue interest - Assessee treated the interest amount not received for more than 90 days as sticky loans and the interest which is accrued and already credited is reversed by creating reserve account and debiting the same as expenditure - Held that:- interest on a loan whose recovery is doubtful and which has not been recovered by the assessee-bank, but has been kept in a suspense account and has not been brought to the P&L a/c of the assessee, could not be included in the income of the assesse. The CIT(A) rightly deleted the additions towards interest on NPAs. There is no error or infirmity in the order of CIT(A). Accordingly, we direct the A.O. to delete the additions made towards interest on NPAs. See DCIT v. The Gandhi Co-op Urban Bank Ltd. [2015 (11) TMI 1626 - ITAT VISAKHAPATNAM] - Decided in favour of assessee
|