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2020 (10) TMI 631 - ITAT BANGALOREDeduction u/s 80P - interest income earned out of investment with cooperative banks was treated as income from other sources - HELD THAT:- Assessee would be addressed by setting aside the issue of deduction u/s.80P(2)(a)(i) to Ld.AO for consideration afresh, with a direction to the Assessee to produce a certificate from RBI that it does not possess license from it for doing banking business and further that business carried on by Assessee is not akin to business of a co-operative bank. First part of Sec.80P(2)(a)(i) allows deduction in respect of income derived by a co- operative Society from business of banking. Even the claim of the Assessee for deduction requires to be examined under the first part of Sec.80P(2)(a)(i) of the Act. Hon'ble Supreme Court in case of Citizen Co- operative Society Ltd. [2017 (8) TMI 536 - SUPREME COURT] has also held that, it is also important to ascertain as to what is the nature of income which is claimed as exempt and as to how the principle of mutuality is not violated in respect of such income. An examination of (i)the memorandum of association, the articles of association, (ii) the byelaws and other documents explaining the rules and regulations of the society is necessary, so as to clearly understand the purpose and the nature of business done by it. An examination of the facts in light of discussion cited by Ld.CIT(A) as well as decision in case of Tumkur [2015 (2) TMI 995 - KARNATAKA HIGH COURT] is to be carried out. Remand the issue back to Ld.AO for re adjudicating it afresh on the basis of above direction.
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