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2022 (3) TMI 968 - ITAT MUMBAIDisallowing interest outgo on bank loans/ overdrafts as business expense - Whether CIT(A) has erred affirming with Ld. AO in not considering the additions as part of total income of the coop credit society and hence allowable as deduction u/s 80P(2)(a)(i) - HELD THAT:- It is undisputed fact that assessee had borrowed money against its own fixed deposit to advance the same to the member of the society. The assessee has categorically submitted before the ld. CIT(A) that interest paid to the bank was expenditure and not the income of the society, however, without disproving contrary the CIT(A) has rejected the claim of the assessee, for payment of interest on loan to the bank which was a part of its expenditure and not income. In this regard we have also perused the decision of coordinate bench of the ITAT, Delhi ACIT Vs. M/s Sangwari Primary Agr. Co-op Society Ltd. [2012 (12) TMI 1224 - ITAT MUMBAI] Thus payment of interest to the bank is an expenditure of the assessee and not income of the society, therefore, the ld. CIT(A) is not justified in confirming the said addition made by the A.O, therefore, ground no. 1 of the assessee is allowed. Since, we have allowed ground no. 1 of the assessee, therefore, ground no. 2 of the assessee for claiming deduction u/s 80P(2)(a)(i) of the Act on the amount of addition sustained by the ld. CIT(A) is not required any adjudication. Appeal of the assessee is partly allowed.
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