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2019 (1) TMI 1588 - ITAT AHMEDABADDeduction u/s. 80P(2)(a)(i) - AO treated the interest income earned from nationlised banks /co-operative banks as income from other sources u/s. 56 - HELD THAT:- Assessee is entitled for deduction u/s. 80P(2)(a)(i) on the profit and gains of business attributable to the activity of providing credit facilities to its members and the assessing officer has correctly treated the interest income earned from banks/co-operative banks as income from other sources u/s. 56 of the act. In this regard, we place reliance on the decision in the case of State Bank of India vs. CIT 2016 (7) TMI 516 - GUJARAT HIGH COURT] We direct the assessing officer to allow pro rata expenses in respect of interest earned from deposit held with nationalized bank and cooperative bank for computing the deduction u/s. 80P after examining/verification and affording adequate opportunity to the assessee. Therefore, the appeal of the assessee is partly allowed for statistical purposes.
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