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2022 (2) TMI 1230 - ITAT BANGALORERevision u/s 263 - Eligibility of deduction u/s. 80P(2)(a)(e) - CIT was of the opinion that though assessee is a cooperative society and carries on the business of providing credit facility to its members, the interest earned from the institutions cannot be allowed as deduction u/s. 80P(2)(a)(i) - HELD THAT:- The issues needs to be revisited by the Ld.AO, however, the directions of the Ld. Pr. CIT to make addition in respect of the provision for gratuity as well as expressing the intention of disallowing certain income while computing 80P(2)(e) as well as (a)(i) is not in accordance with law. We also refer that Hon'ble Supreme Court in the case of Mavilayi Service Cooperative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT] considered the issue relating to interest income earned and has distinguished the decisions in case of Tumkur Merchants Souharda Credit Co-operative Society Ltd. [2015 (2) TMI 995 - KARNATAKA HIGH COURT]. In view of the above, we modify the directions of Ld. Pr. CIT by directing the Ld.AO to carry out de novo verification on the issues considered by the Ld. Pr. CIT in the impugned order having regard to the principle laid down by Hon’ble Supreme Court in case of Mavilayi Service Cooperative Bank Ltd. Vs. CIT (supra). The assessee is directed to file all requisite details in support of the claim which would be verified by the Ld.AO in accordance with law. Appeal filed by the assessee stands allowed for statistical purposes.
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