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2016 (10) TMI 1195 - AT - Income TaxDeduction u/s. 80P(2) - Whether the interest received from the Government Treasury is to be included under the head “income from other sources” or “income from business" - Held that:- In the instant case, the assessee is a cooperative Bank. Investment in treasury/banks and earning interest on the same is part of the banking activity of the assessee’s cooperative bank. The said income is eligible for deduction u/s 80P(2)(a)(i). Income Tax Authorities were not justified in treating interest income received by the assessee as ‘income from other source’ and denying the benefit of section 80P(2) of the Act. This ground of the assessee is allowed. Disallowance of interest paid - Held that:- CIT(A) has very candidly admitted that the additional evidence placed before him could not be verified due to time constraints. Matter needs fresh consideration by the CIT(A). This issue to the file of the CIT(A). CIT(A) shall dispose off the matter as expeditiously as possible in accordance with law, after affording reasonable opportunity of being heard to the assessee.
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