TMI Blog2011 (2) TMI 1543X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order of the CIT(A)-II, Pune dated 06-10-2008 for the A.Y. 2005-06. 2. At the very outset, summing up the grounds of appeal, the learned counsel for the assessee stated that the issue under consideration relates to if the disallowance made u/s 40(a)(ia) of the Act becomes taxable when the said amount is otherwise attributable to the banking activities of the Credit Sanstha which en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety (p. 66 of the paper book). Further, the confirmation from the chairman placed at p. 132 of the paper book reveals that the loans were provided ITA No.159/PN/09 Karad Merchant Sah. Credit Sanstha A.Y. 2005-06 only to members. The Hon'ble supreme Court in the case of U.P. Co-op. Cane Union Federation Ltd., Vs. CIT (1999) 157 CTR (SC) 569 has held that the definition of a member of a co-op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to deduction under sec. 80P and thus, the entire income of the assessee is entitled to deduction u/s 80P and, accordingly, no addition is sustainable in the hands of the assessee-society. 3. Similar view was also taken by Ahmedabad 'B' Bench of the Tribunal in the case of ITO Vs. Computer Force (2011) 48 DTR (Ahd) (Trib) 298 and by jurisdictional High Court in the case of CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowable, an addition made on account of disallowance of expenditure debited to the P L a/c is also required t be covered under provisions of section 80P. In view of the above, even though addition of ₹ 7,67,936/- made to the income of the assessee is sustained, it is held that the deduction u/s 80P(2)(a)(i) of the Act was allowable on the total income. In view of the above, this ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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