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Case Law Details

Case Name : JCIT Vs Kanchangauri Mahila Sahakari Patpedhi Maryadit (ITAT Mumbai)
Appeal Number : ITA No. 780/Mum/2018
Date of Judgement/Order : 01/07/2020
Related Assessment Year : 2014-15
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JCIT Vs Kanchangauri Mahila Sahakari Patpedhi Maryadit (ITAT Mumbai)

In the present case, the assessee is co-operative credit society. The assessee is an AOP engaged in providing credit facilities to its members and interest is charged on these credit facilities/loans advances made by the assessee, while the assessee has also received deposits from its members and paid interest on these deposits. The assessee has claimed deduction u/s 80P(2)(a)(i) which was disallowed by the AO by invoking provision of Section 80P(4) of the 1961 Act.

ITAT states that the assessee is co-operative credit society and is only dealing with its members in providing credit facilities on which interest is charged and the assessee is also accepting deposits from its members on which interest is paid by the assessee. Further, ITAT have observed that the assessee is not dealing with outside public and had confined its dealings with members only. ITAT have observed that in assesse’s own case for AY 2012-13 and 2013-14 , the tribunal has taken a consistent view that the assessee is entitled for deduction u/s. 80P(2)(a)(i) of the 1961 Act. Assessee could not be held to be engaged in business of banking especially on account of assessee having no licence from RBI, therefore, claim of assessee was not hit by section 80P(4) and denial of deduction was not justified.

Hence Appeal filed by revenue is dismissed.

FULL TEXT OF THE ITAT JUDGEMENT

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