TMI Blog2014 (1) TMI 1927X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee is to provide credit facility to the members and therefore the interest earned from short term deposits is business income and is eligible for deduction under Section 80P(2)(a)(i) and no portion thereof can be taxed under Section 56 as income from other sources - Decided against revenue. Addition made on account of building fund in the income of the assessee but deduction u/s. 80P was not allowed by considering the Supreme Court in the case of Vijaya Bank [ 2010 (4) TMI 46 - SUPREME COURT] but in that case disallowance was made on account of doubtful debt and to that extent assessee-bank income increased. But in all cases the additions were made on account of building funds had been debited in the assessee s income gen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in all the cases except 2007-08 in ITA no. 414/Ahd/2013 2. Effective ground of appeal is as under in ITA No. 410/Ahd/2013:- 1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 18,94,555/- made u/s. 80P(2)(a)(i) of the Act on account of deduction claimed u/s. 80P(2)(a)(i) 80P(2)(d) without appreciating the fact that as per sub section(4) of Section 80, the scope of deduction has been restricted to only Primary Agricultural Credit Society and Primary Co-operative Agricultural and Rural Development Bank. 3. In all the cases identical grounds have been taken by the revenue. 4. The AO observed in case of Meghraj Taluka Primary Teachers Cooperative Credit Society that assessee had shown gross total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(a)(i) as claimed in the return for the reasons stated above. It was held that assessee is a cooperative society but neither primary agricultural credit society nor a primary cooperative agricultural and rural development bank, therefore he denied the deduction u/s. 80P(2)(a)(i) and 80P(2)(d). 5. Similar findings were given by the AO in all the cases. 6. The assessee being aggrieved by the order of AO went before CIT(A) who had allowed the appeal by considering the submission of the assessee and ratio in case of ITO vs. Sri Rama Co-operative Bank Ltd in ITA No. 1182/Bang/2010 for A.Y. 2005-06, Jafari Momin Vikas Cooperative Society Ltd in ITA No. 1491/Ahd/2012 for A.Y. 2009-10, ACIT vs. M/s Bangalore Commercial Transport Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive bank. The Hon ble Jurisdictional High Court has also considered CBDT Circular No. 133 of 2007 dated 09-05-2007 in this order. Thus he requested to dismiss the revenue s appeals. 9. We have heard rival contentions and perused the material on record and facts of the case are identical in all appeals of the revenue. The issue is whether co-operative society providing credit facilities to its members covered in sub-section (4) of section 80P or not. The assessee is in the business of providing credit facility to its member and accepting the deposits from the member. The Hon ble Gujarat High Court in case of Jafari Momi Vikas Credit Society is as under:- 7. From the above, it is clear that the income of the assessee is eligible for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution towards PF/ESIC on which deduction u/s. 10A was allowed by Hon ble Bombay High Court. Accordingly, he requested to allow the deduction u/s. 80P of the IT act. Ld. DR relied on the order of AO. 13. We have heard the rival contentions in both the cases that addition was made on account of building fund in the income of the assessee but deduction u/s. 80P was not allowed. By considering the Supreme Court in the case of Vijaya Bank(supra) but in that case disallowance was made on account of doubtful debt and to that extent assessee-bank income increased. But in all cases the additions were made on account of building funds had been debited in the assessee s income generated from providing credit facility to its members. Therefore it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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