ITO 20(3)4), MUMBAI vs. CENTRAL RAILWAY EMPLOYEE CO-OP CREDIT SOCIETY LTD, MUMBAI

The present appeal has been filed by the revenue against the order dated 16.05.2017 passed by the Commissioner of Income Tax (Appeals)-32, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the assessment year 2014-15.

The revenue has raised the following grounds: - "1. On the facts and circumstances of the case the Ld. CIT(A) has erred in allowing deduction u/s 80P to the assessee even though assessee carries on the banking business and other business in the name of the co-operative credit society.

The brief facts of the case are that the assessee filed its return of income on 13.09.2014 for the A.Y. 2014-15 declaring total income to the tune of Rs. Nil after claiming the deduction u/s 80P of the I.T. Act, 1961. Thereafter, the return was processed u/s 143(1) of the I.T. Act, 1961. Thereafter, the case was selected for scrutiny. Notices u/s 143(2) & 142(1) of the Act were issued and served upon the assessee. The assessee is an AOP running a Co-operative Credit society and doing banking business for their members. The society was also collecting deposits from members by way of fixed deposits, saving deposits and recurring daily deposits etc. The income of the assessee under the year of assessment was to the tune of Rs.35,04,13,487/-. The assessee claimed the deduction u/s 80P(2) of the I. T. Act, 1961. Considering this fact that the assessee was doing the banking business, therefore, the claim of deduction u/s 80P(2)(a)(i) of the Act was denied and the income of the assessee was assessed to the tune of Rs.35,04,13,490/-Feeling aggrieved, the assessee filed an appeal A.Y.2014-15 before the CIT(A) who allowed the claim of the assessee, therefore, the revenue has filed the present appeal before us.