TMI Blog2014 (10) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... me received from the bank. The grounds of appeal raised by the assessee are thus, allowed. - ITA No.2178/PN/2013 - - - Dated:- 31-10-2014 - SHRI G.S. PANNU, ACCOUNTANT MEMBER AND Ms. SUSHMA CHOWLA, JUDICIAL MEMBER For The Appellant : Shri Kishore Phadke For The Respondent : Shri Mazhar Akram ORDER PER SUSHMA CHOWLA, JM: This appeal filed by the assessee is against the order of CIT(A), Kolhapur dated 25.11.2013 relating to assessment year 2010-11 against order passed under section 143(3) of the Income-tax Act. 2. The assessee has raised the following grounds of appeal: 1.1 The learned AO failed to appreciate that the assessee is exclusively engaged in the business of providing credit facility to it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the Assessing Officer. 6. The brief facts of the case are that, the assessee is a co-operative credit society engaged in the business of providing credit facility to its members. During the course of assessment proceedings and on verification of financial statements and on examination of books of account, the Assessing Officer noted that the assessee society mainly earned income from interest from loans and advances given to the members and from other co-operative societies. The assessee also deposited its surplus funds with the banks and earned interest income thereon. The assessee had claimed deduction under section 80P(2)(a)(i) of the Act in respect of the whole of interest income i.e. ₹ 64,56,310/-. The assessee was show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the interest income earned from the banks could not be said to be attributable to the activities of the assessee as its activities were to provide credit facilities to its members. Since the interest received from the bank was not in the course of activities carried on by the assessee, the denial of deduction under section 80P(2)(a)(i) of the Act was upheld by the CIT(A). 8. The assessee is in appeal before us against the order of CIT(A). We find that the Pune Bench of the Tribunal in the case of another cooperative society i.e. Hind Vijay Nagari Sahakari Patsanstha Maryadit Vs. ITO in ITA Nos.845 846/PN/2013 other co-operative societies, had after considering similar objections, has raised in the present appeal had de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviding credit facilities to its members and hence not eligible for deduction u/s.80P(2)(a)(i) of the Income Tax Act in view of the decision of Hon ble Supreme Court in the case of Totagar s Cooperative Sale Society Ltd. (Supra). We find the Ld. CIT(A) allowed the claim of the assessee on the ground that the assessee is entitled to deduction u/s.80P(2)(a)(i) on account of interest from banks other than cooperative banks, interest on mutual funds long term and short term capital gain on mutual funds etc. While doing so, he held that the decision in the case of Totagar s Cooperative Sale Society Ltd. (Supra) is not applicable to the facts of the present case since in that case the amount invested in short term deposits and securities was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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