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TMI Blog2024 (5) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... Per: Sanjay Arora, AM This is an Appeal by the Assessee, directed against the Order dated 13.12.2022 by the Commissioner of Income Tax (Appeals), Income Tax Department [CIT(A)], dismissing the assessee's appeal contesting it's assessment under section 143(3) of the Income Tax Act, 1961 (the Act) dated 26.12.2016 for Assessment Year (AY) 2014-15. The assessee has also filed a Stay Application (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes, the defining attribute of a PACS, which though is irrelevant for the purpose of eligibility for deduction u/s. 80P(1) r/w s. 80P(20(a)(i), even as explained in Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC). Smt. Devi, the Sr. DR, would, on the other hand, rely on the orders by the Revenue authorities. 3. We have heard the parties, and perused the material on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -laws, it is in the business of banking notwithstanding the area restrictions for it's operations inasmuch as the same are applicable only qua it's members. Rather, in such a case, being in the business of banking, even income on provision of credit to non-members would stand to be deductible u/s. 80P(2)(a)(i). The bye-laws of the assessee-society are not on record, neither stand referred to in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Two, where it's bye-laws permit it to accept deposit from non-members, it is by definition in the business of banking and, accordingly, entitled to deduction on it's profit in full, as opposed to that attributable to the provision of credit to it's members. 3.3 We decide accordingly. 4. In the result, the assessee's appeal is allowed on the above terms. Order pronounced on April 03, 2024 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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