Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 559 - AT - Income TaxDeductions u/s 80P(2)(a)(i) - interest and dividend earned from investments with other cooperative banks/societies - HELD THAT:- Issue involved in present appeal filed by the assessee is squarely covered in favour of the assessee by the decision in the case of M/s. Quepem Urban Credit Society Ltd. vs ACIT [2015 (6) TMI 573 - BOMBAY HIGH COURT] where under identical set of facts, the Hon’ble High Court held that interest and dividend earned from investments with other cooperative banks/societies is entitled for deductions u/s 80P(2)(a)(i). In the case of Mahapalika Kshetra Madhyamik Shikshak Sahakari Patsanstha Maryadit [2019 (11) TMI 407 - ITAT MUMBAI] had considered an identical issue and held that where assessee, a co-operative credit society had not undertaken any of banking business and was providing credit facilities to its members only and not to general public, it would not hit by provisions of section 80P(4) and thus, entitled for deduction u/s 80P(2)(a)(i) of the I.T.Act, 1961. In this case, on perusal of facts available on record, there is no dispute with regard to the fact that the assessee is not carried out any banking business to public at large, but was engaged in the providing credit facilities to its members only. Income earned by the assessee, including interest and dividend received from investments with other co-operative society/co-operative banks is entitled for deduction u/s 80P(2)(a)(i) - we direct the Ld. AO to allow the benefit of deduction u/s 80P(2)(a)(i) of the I.T.Act, 1961, in respect of interest and dividend earned from investments with other co-operative banks/societies. - Decided in favour of assessee.
|