Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 2105 - ITAT PUNEDeduction u/s 80P - Taxability of the interest income earned from the Fixed Deposits with banks other than the Cooperative Banks/Societies - AO is of the opinion that the said income is taxable and the exemption u/s.80P(2)(a)(i) of the Act is not available to such receipts - HELD THAT:- An identical issue was dealt with by the Hon'ble ITAT, B Bench, Pune in appellant's own case for assessment year 2010-11 [2015 (8) TMI 1085 - ITAT PUNE] as relied on the judgment of Hon'ble Supreme Court in the case of CIT Vs. Vegetable Products [1973 (1) TMI 1 - SUPREME COURT] and held that the interest income earned on short term deposits kept with banks has to be allowed as deduction u/s 80P(2)(a)(i). AO was not justified in denying the appellant's claim of deduction u/s 80P(2)(a)(i) - In the result, the claim of the appellant u/s 80P(2)(a)(i) of the Act for the year under consideration is allowed. We are of the opinion that the assessee is entitled to deduction u/s.80P(2)(a)(i) in respect of the interest income earned on fixed deposits kept with the Nationalized Banks/Scheduled Banks and the same constitute as business income of the assessee. We therefore uphold the order of CIT(A) and direct the AO to allow the claim of assessee. Grounds raised by the Revenue are dismissed and in favour of the assessee.
|