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2022 (2) TMI 118 - AT - Income TaxAvailability of deduction u/s 80P on interest - AO denied the benefit of deduction on the ground that the amount of interest income did not qualify, which view came to be countenanced partly in the first appeal by the ld. CIT(A) allowing proportionate deduction - HELD THAT:- CIT(A) has accepted the assessee’s contention, in principle, about the eligibility of deduction u/s.80P(2) of the Act on interest income. He, however, restricted the benefit proportionately by considering the total receipts of the assessee vis-à-vis the amount of interest income. Once the ld. CIT(A) accepted the contention of the assessee for deduction u/s.80P(2), it was to be allowed in respect of the entire interest income. As against the interest income of ₹ 1.04 crore, the assessee’s amount of deduction u/s 80P stood only at ₹ 11,04,044. Therefore set-aside the impugned order and direct to grant the benefit of deduction u/s.80P(2)(a) on the full amount claimed by the assessee.- Decided in favour of assessee.
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