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2015 (11) TMI 740 - AT - Income TaxDeduction u/s.80P(2)(a)(i) - interest earned on the FDs placed by it with banks - Held that:- The money meant for lending, remaining surplus, there being no takers, if deposited in banks for earning interest, such interest income would be attributable to the business of banking carried out by the assessee. Thus assessee was eligible for claiming deduction u/s.80P(2)(a)(i) of the Act, on the interest earned on the FDs placed by it with banks, this being a part of its business income. See Tumkur Merchants Souharda Credit Cooperative Ltd., v. ITO [2015 (2) TMI 995 - KARNATAKA HIGH COURT] - Decided in favour of assessee. Denied deduction u/s.80P(2)(a)(iv) on income from operation of water treatment plant - Held that:- What is exempted by virtue of Section 80P is income arising on account of purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to the members. Here admittedly there was no purchase. Further, the water was not exclusively intended for agricultural use. We are, therefore, of the opinion that claim of the assessee was rightly denied by the lower authorities. We do not find any ground to interfere with the orders of authorities below. - Decided in favour of revenue.
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