TMI Blog2020 (8) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... ari Patsanstha Maryadit [ 2019 (11) TMI 407 - ITAT MUMBAI] had considered an identical issue and held that where assessee, a co-operative credit society had not undertaken any of banking business and was providing credit facilities to its members only and not to general public, it would not hit by provisions of section 80P(4) and thus, entitled for deduction u/s 80P(2)(a)(i) of the I.T.Act, 1961. In this case, on perusal of facts available on record, there is no dispute with regard to the fact that the assessee is not carried out any banking business to public at large, but was engaged in the providing credit facilities to its members only. Income earned by the assessee, including interest and dividend received from investments with oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modify all or any the above grounds at the time of hearing. 3. The brief facts of the case are that the assessee is a cooperative credit society, registered under the Maharashtra Cooperative Society Act, 1960. The assessee has filed its return of income for AY 2014-15 on 15/09/2014, declaring total income at Rs. Nil after claiming deduction u/s 80P(2)(1) of the I.T.Act, 1961. The case was selected for scrutiny and the assessment has been completed u/s 143(3) of the I.T.Act, 1961 on 23/12/2016, determining the total income at ₹ 18,61,390/-, where the Ld. AO has assessed interest on FD and dividend received from other co-operative societies/co-operative banks the head income from other sources. While doing so, the Ld. AO has ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in appeal before us. 5. The Ld. AR for the assessee, at the time of hearing submitted that the issue involved in present appeal filed by the assessee is squarely covered in favour of the assessee by the decision of ITAT, Mumbai in the case of Mahapalika Kshetra Madhyamik Shikshak Sahakari Patsanstha Maryadit Vs ITO (2019) 112 taxxman.com 165, where the Tribunal held that a assessee cooperative credit society had not undertaken any of banking business activities and was providing financial assistance/credit to its members, only and not to general public, it would not be hit by provisions of section 80P(4) of the I.T.Act, 1961 and thus was entitled for deduction u/s 80P(2)(a)(i) of the I.T.Act, 1961. 6. The Ld. DR, on the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts available on record, there is no dispute with regard to the fact that the assessee is not carried out any banking business to public at large, but was engaged in the providing credit facilities to its members only. Therefore, we are of the considered view that income earned by the assessee, including interest and dividend received from investments with other co-operative society/co-operative banks is entitled for deduction u/s 80P(2)(a)(i) of the I.T.Act, 1961. Hence, we direct the Ld. AO to allow the benefit of deduction u/s 80P(2)(a)(i) of the I.T.Act, 1961, in respect of interest and dividend earned from investments with other co-operative banks/societies. 8. In the result, appeal filed by the assessee is allowed. Order pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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