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2022 (5) TMI 1445 - ITAT PANAJIEligibility of deduction u/s 80P(2)(a)(i) - exemption of income received from BDCC Bank and other banks under the provisions of section 80P(2)(d) - CIT-A held Interest earned on long term investments i.e. deposits for period of more than one year received from BDCC Bank and other banks is not eligible for exemption u/s 80P(2)(d) - interest received from SB accounts or other bank or schedule bank, the short term investments is treated as business income of the assessee - Whether interest earned on long term investments cannot be treated as business income? - HELD THAT:- We find that the section 80P does not make a distinction between the long term investments and short term investments, the only requirement under the provisions of section 80P(2)(d) is that an interest income or dividend income should be earned by a co-operative society from another cooperative society. The provisions of section 80P does not provide for any distinction between income earned on long term and short term investments. Thus, the ld. CIT(A) clearly fell in error in drawing such distinction not supported by any statutory provisions in the Act. Therefore, the findings of the ld. CIT(A) contained in sub-para (e) of para 11 are set-aside. Therefore, the grounds of appeal filed by the assessee stands allowed.
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