Q: A co-operative housing society provides credit facility to its members. Due to sudden inflation in cost of land, the society earned profits against sale of apartment (construction done by the society), loans given to the prospective purchasers admited as members of the society under principles of mutuility. Please confirm whether this additional profit of around 3 Cr. [having no motive to earn it and duly allowed by society's bye-laws] is taxable in the hands of the society or goes for deduction u/s 80P (2)(a)????
The Society is a very big organisation having 40,000 members and are giving housing loan facility by mortgage of house property. Investments are about 300 Cr.
Adv. Alok A. Bhagat