2021 (1) TMI 1108

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....turn of income on 01.10.2014 with total income Rs. Nil after claiming deduction under provisions of Sec. 80P of the Act. Subsequently, the case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act along with questionnaire was issued. The A.O on perusal of the financial statements found that the assessee is running a cooperative society and doing banking with its members. The gross total income for the F.Y 201314 as per the return of income filed is Rs. 1,47,61,101/- and the same has been claimed as a deduction U/sec 80P of the Act. The assessee submitted that, the cooperative society is in business of granting of medium term, short term and long term loans to its members and also credit facilities to its member. Therefore, ....

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....the Ld.CIT(A) has erred in granting relief to the assessee under 80P of the Act, whereas the assessee carries on the business of banking and other business in the name of cooperative society and the amendment in Finance Act, 2006 which is effect to 01.04.2007 has to be considered in respect of claim u/s 80P(2) of the Act and prayed for allowing the appeal of the revue. 5. Contra, the Ld. AR supported the orders of the Ld.CIT(A) and relied on the earlier years order. 6. We heard the rival submissions and perused the material on record. The sole matrix of the disputed issue emphasized by the Ld.DR in respect of granting of deduction u/s 80P of the Act to the Cooperative Society. The Ld. AR has submitted that the Ld. CIT(A) has followed the ....

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.... IT'AT Mumbai in appellant's own case for A.Y 2012-13 and A.Y 2013-1z - on similar facts the AO had disallowed deduction u/s. 80P(2)(a)(i) and treated the dividend received from Mumbai District Central Cooperative Bank (MDCC) as taxable and the order of the CIT(A) allowing deduction u/s. 80P(2)(a)(i), relying on the decision of the jurisdictional Bombay High Court in the case of Quepem Urban Cooperative Credit Society [20151 58 taxmann.com 113 (Bombay), were upheld since the assessee society '.vas found to be not carrying out any business of banking. i) ITA No. 4986/MUM/2016 - A.Y 2012-13 dated 15.03.2018 in which revenues appeal was dismissed. ii) ITA No. 864/MUM/2017 - A.Y 2013-14 dated 20.06.2018 in which revenues appeal was ....