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2017 (3) TMI 1037 - AT - Income TaxClam of deduction u/s 80P - Held that:- CIT(A) is justified in directing the AO to allow the deduction claimed by the assessee u/s 80P on the reason that the assessee, a cooperative credit society is not a bank for the purposes of section 80P(4) of the Act. Thus the orders of the Ld.CIT(A) dated 11.02.2011 and 29.11.2011 for the Assessment Years 2007-08 and 2008- 09 respectively are upheld. - Decided in favour of assessee Denial of deduction u/s.80P(2)(a)(i) - interest income arising on fixed deposit - Held that:- In the instant case there is no dispute to the fact that the society is a credit cooperative society authorised by the registrar of cooperative societies for accepting deposits and lending money to its members as per license granted by the registrar of cooperative societies and the main object of the society is to provide credit facility to members who can be any person of the society. We find in the case of Mahavir Nagari Sahakari Pat Sanstha Ltd.(2000 (2) TMI 234 - ITAT PUNE ) has held that the credit society which is carrying on the business of banking activity and providing credit facility to its members is eligible for deduction u/s.80P(2)(a)(i). In view of the above discussion CIT-A justified in holding that the assessee is entitled to deduction u/s.80P(2)(a)(i) when the income of the society on account of interest from banks other than Co-op. Banks, interest on Mutual Funds, long term capital gain on mutual funds and short term capital gain on Mutual Fund - Decided in favour of assessee
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