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2014 (4) TMI 21 - AT - Income TaxEligibility for deduction u/s 80P(2)(d) of the Act- Interest receipts from deposits – Held that:- The assessee has neither offered to tax the interest income and therefore, there is no question of the assessee claiming deduction u/s 80P(2) - If interest income is offered for taxation and then deduction is not claimed, section 80A(5) would have application - The AO had added the interest income which otherwise would have been allowed as a deduction – thus, on the principles of equity, the Assessing Officer was duty bound to give the assessee a change to claim deduction u/s 80P(2). In CIT vs. Mahindra Mills [2000 (3) TMI 3 - SUPREME Court] it has been held that the Department should not take advantage of ignorance of an assessee and every assessee should be made known of his/its tax liability as well as benefits, reliefs and deduction available under the statute - also in Goetze (India) Limited Versus Commissioner of Income-Tax [2006 (3) TMI 75 - SUPREME Court] – the provision of Income Tax Act, 1962 restricted the power of the assessing authority to entertain a claim of deduction otherwise than by way of filing a revised return - such restriction did not extend/impinge on the power of the Appellate Tribunal u/s 254 of the Act – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Assessee.
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