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TMI Blog2018 (12) TMI 1672X X X X Extracts X X X X X X X X Extracts X X X X ..... f the learned Commissioner of Income-tax [Appeals] - 5 in so far it is against the appellant is opposed to law, weight of evidence, facts and circumstances of the Appellant's case. 2. The appellant denies itself liable to be assessed on total income of Rs. 80,89,198/- as against the returned income by the appellant of Rs.NlL/- after claiming eligible deduction under section 80 P [2] of the Act, on the facts and circumstances of the case. 3. The learned Commissioner of Income-tax [Appeals] is not justified in law in confirming the denial of eligible deduction made by the learned assessing officer claimed by the appellant of Rs. 63,23,777/- under the provisions of section 80 P [2] [a] [i]of the Act as income from business and Rs. 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant from investments which was claimed as deduction under section 80 P [2] [d] of the Act, on the facts and circumstances of the case. The assessee has raised the following grounds for AY 2014-15 : 1. The order of the learned Commissioner of Income-tax [Appeals] - 5 in so far it is against the appellant is opposed to law, weight of evidence, facts and circumstances of the Appellant's case. 2. The appellant denies itself liable to be assessed on total income of Rs. 78,01 ,335/- as against the returned income by the appellant of Rs.NlL/- after claiming eligible deduction under section 80 P [2] of the Act, on the facts and circumstances of the case. 3. The learned Commissioner of Income-tax [Appeals] is not justified in la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of section 80 P [2] of the Act on the facts and circumstances of the case. 7. Without prejudice the learned authorities below ought to have allowed the corresponding expenditures proportionately on income earned by the appellant from investments which was claimed as deduction under section 80 P [2] [d] of the Act, on the facts and circumstances of the case. 8. Without prejudice the learned authorities below did not give the appellant a reasonable opportunity of hearing and produce the documents in support of the case of the appellant which is against the principles of natural justice and consequently the impugned orders passed requires to be cancelled on the facts and circumstances Of the case. 9. Without prejudice to the right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erm deposits with banks and in Govt. Securities are not eligible for deduction u/s 80P. The words "the whole of the amount of profits and gains of business" in section 80P(2)(a) emphasizes that the income in respect of which deduction is sought must constitute the operational income and not the other income which accrues to the society. In view of the above discussion, the claim on this interest income is also to be disallowed as per the provisions of Section 80P(2)(d). The assessee being aggrieved, filed appeals before the CIT (A) for the two assessment years. 03. On appeal, the assessee submitted before the CIT (A) that the assessee is not a cooperative bank, but a cooperative society, that was doing the business of lending credit to it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . If the assessee does not have the banking licence, but still the core activity of the assessee would continue to be that of banking activity. 06. We have heard the rival contentions and perused the material on record. As per para 24 of the Hon'ble Supreme Court in Citizen Cooperative Society (supra), which is reproduced supra, it is incumbent upon any society / bank to have the licence from RBI for the purposes of doing the business of banking. In the case before the Hon'ble Supreme Court, the assessee had obtained a certificate from the RBI clarifying that the assessee's business does not fall under the category of cooperative bank. In our view, it will be equitable in the interest of justice if the matter is remanded back to the file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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