S R C C SOCIETY LTD,HORTI vs. ITO, WARD 1 TPS, VIJAYAPURA, VIJAYAPURA
Income Tax Appellate Tribunal, ‘A’ BENCH, BANGALORE
Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY
PER WASEEM AHMED, ACCOUNTANT MEMBER:
These are the appeals filed by the assessee against the order passed by the NFAC, Delhi dated 14/02/2024 in DIN Nos.
ITBA/NFAC/S/250/2023-24/1060915659(1) and ITBA/NFAC/S/250/2023-
24/1060914330(1) for the assessment year 2016-17 and 2017-18
respectively.
First, we take ITA No. 1987/Bang/2024 an appeal by the assessee for A.Y. 2016-17 as the lead case.
ITA No.1986 & 1987/Bang/2024
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3. The assessee has raised as many as 5 grounds of appeal, however issued raised in ground nos. 1 to 5 are interconnected and pertains to the disallowance of deduction claimed under section 80P(2)(d) of the Act for Rs. 57,95,443/- only.
The facts in brief are that the assessee is a cooperative society and engaged in the business of providing credit facilities to its members. The assessee for the year under consideration declared gross receipt of Rs. 3,29,97,709/- and after claiming expenditure declared income of Rs. 86,44,404/- against which 100% deduction was claimed under section 80P(2)(a)(i) of the Act.
The AO during the assessment proceedings found that the assessee is accepting deposit and advancing loan to two class of members being (A) regular member and (B) associate/nominal member. Apart from this, the assessee has also provided loans to members of general public by making them associate members who are not falling either under class (A) or class (B) of the member. The AO further found that as per law governing the society, the assessee cannot admit the member other than regular member. The AO further found that the assessee without obtaining approval from the