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2016 (6) TMI 1310 - AT - Income TaxDisallowance of part of deduction claimed under section 80P(2)(a)(i) - interest income - Held that:- In the present case there is no surplus fund available as demonstrated from the Balance Sheet and secondly, the investments made in the fixed deposit is assessee’s own funds and not a liability of the assessee re–payable to the members - No hesitation in holding that the interest income earned by the assessee on the fixed deposits kept with the banks is to be treated as business income of the assessee and the assessee would be eligible to claim deduction under section 80P(2)(a)(i) on such income. Therefore, allowing the grounds raised by the assessee, we set aside the order of the learned Commissioner (Appeals) on this issue. In view of our aforesaid decision, the alternative grounds raised by the assessee for allowing expenditure on the interest income has become infructuous, hence, not required to be adjudicated.
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