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2017 (4) TMI 1311 - AT - Income TaxExemption u/s 80P(2)(a) - interest income received from State Bank of India - Held that:- As decided in the case of State Bank of India Vs. CIT [2016 (7) TMI 516 - GUJARAT HIGH COURT] interest income on deposits placed with State Bank of India was not exempt under section 80P(2)(a)(i) Alternatively as contended by the assessee that the matter be restored to the file of the AO with direction that only net interest income earned by the assessee from FDRs. with nationalized banks should be excluded from the claim of deduction under section 80P(2) is acceptable because, only net amount is always taxable for the purpose of income tax. If assessee has incurred any expenditure, which is attributable to the earning of interest income, then, the AO shall examine that aspect and exclude the interest expenditure if any incurred by the assessee for earning this interest from bank. The only net interest income is to be excluded from the claim of deduction under section 80P(2) of the Act. Appeal of the assessee is allowed for statistical purpose.
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