Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 997 - ITAT AHMEDABADDeduction u/s 80P(2)(a)(i) - interest income earned from deposits held with nationalized bank - Assessee is a cooperative society registered under Gujarat Cooperative Societies Act, 1961 and engaged in providing credit facilities to its members - Allowance of prorata expenses in respect of interest income earned from deposits - Held that:- We find that Hon’ble jurisdictional High Court in the case of STATE BANK OF INDIA (SBI) VERSUS COMMISSIONER OF INCOME TAX [2016 (7) TMI 516 - GUJARAT HIGH COURT] has held that interest earned from investment made in scheduled bank by a cooperative society engaged in providing credit facilities to its members, is not eligible for deduction under section 80P(2). The Tribunal in earlier occasions on similar issue has taken a consistent view by following above judgment of the Hon’ble jurisdictional High Court. Since orders of the Revenue authorities are in accordance with judgment of the Hon’ble jurisdictional High Court cited supra, no interfere is called for in the impugned orders, which we confirm. However, any expenditure incurred by the assessee for earning such income could be allowed to it, if not already allowed. In other words, the AO has to allow prorata expenses in respect of interest income earned from deposits held with nationalized bank for computing deduction under section 80P(2) of the Act. -Appeal of the assessee is partly allowed for statistical purpose.
|