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TMI Blog2022 (10) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... account which is attributable to the activity of the credit co-operative society of providing credit facilities to its members. (The AO has worked out demand in the assessment order at Rs.31,030/- which was subsequently rectified u/s 154 raising demand of about Rs.1,75,000/-.) 2. The appellant craves, leave to add, alter, amend and delete any of the above grounds of appeal. 2. At the very outset, the ld. AR submitted that there is a delay of 2 days in filing the appeal before the Tribunal. The assessee had filed condonation petition and an affidavit. I have gone through the contents of the condonation petition and affidavit and the reasons enumerated therein. I am of the considered view that such a delay of 2 days cannot be attributable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the assessment order and submissions of assessee, supported the findings of AO and upheld the addition by opining that the provisions of section 80P(2)(a)(i) of the Act provides deduction only in respect of the business activity of the assessee in this case it is providing credit facilities to members, the activity of giving loan to members and receiving interest is only eligible for deduction u/s 80P(2)(a)(i) of the Act. If there is any income arising to the co-operative society from the non-members, that will not be subject to deduction under the said provision and accordingly, the NFAC upheld the addition. 4. At the time of hearing, the ld. AR submitted that as already evident from the submissions made before the NFAC, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from such Resolution. The assessee has also not brought on record any evidence or material to substantiate what exactly the nature of such development funds for which the interest @ 2.5% of the loan amount is charged. Therefore, it cannot be said that the deduction u/s 80P(2)(a)(i) of the Act is allowable to the assessee. The ld. DR therefore, submitted the matter may be restored to the file of AO for verification regarding the 'development fund' and whether that can be said to be attributable to the business activity of the assessee. 5. Having heard the parties, I am in conformity with the submissions of the ld. DR. The provisions of section 80P(2)(a)(i) of the Act allows deduction to the amount earned from the profits and gains of busin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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