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2017 (10) TMI 1498 - AT - Income TaxDeletion of addition on interest income earned from nationalized Banks - provisions of section 80P(1), 80P(2) and 80P(2)(d) of the Income Tax Act, 1961 ignored - deletion of addition made by the A.O. on profit from the business of Holiday Homes. Addition on account of interest income from other sources - AO is of the view that the assessee has parked its surplus funds by way of depositing the same in the current, savings and fixed deposits account with the bank - HELD THAT:- The AO is directed to allow the deduction as claimed by the assesee u/s 80P(2)(a)(i) of the Act. Deduction u/s 80P(2)(a)(i) of the Act from business of holiday homes - AO rejected the claim of the assessee for the deduction u/s 80P(2)(a)(i) of the Act on the ground that deduction is available on the income attributable to the business providing credit facilities to the members. As such the activity of holiday home is not eligible for deduction - HELD THAT:- The deduction is available to the assessee from the business of banking or providing credit facilities the members. The present issue is with regard to the income earned by the assessee from the running and maintenance of holiday homes for the members. Thus, the same cannot be allowed as deduction under the provisions of section 80P(2)(a)(i) of the Act - Deduction not allowed. Appeal allowed in part - decided partly in favor of Revenue.
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