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2018 (11) TMI 1883 - AT - Income TaxDeduction u/s. 80P(2)(a)(i) - interest received on term deposit from SBI - HELD THAT:- As assessee has claimed deduction on above said interest income u/s. 80P(2)(a)(i) of the Act only and not u/s 80P(2)(d) claim is to be allowed as relying on the case of Shri Tatyasaheb Mohite Nagari Sahakari Patpedhi Ltd. [2018 (4) TMI 446 - ITAT MUMBAI] as stating that the amount which was invested in banks to earn interest was not an amount due to any members. It was not the liability. It was not shown as liability in their account. In fact this amount which is in the nature of profits and gains, was not immediately required by the assessee for lending money to the members, as there were no takers. Therefore they had deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P(1) of the Act. The order passed by the appellate authorities denying the benefit of deduction of the aforesaid amount is unsustainable in law. - Decided in favour of assessee. Deduction u/s. 80P(2)(a)(i) on commission income earned by the assessee from Maharashtra State Electricity Board (MSEB) - As relying on DRONAGIRI NAGRI SAHAKARI PATSANSTHA MARYADIT VERSUS THE INCOME TAX OFFICER, WARD-3, PANVEL [2018 (6) TMI 1576 - ITAT PUNE] we set aside the order passed by the learned CIT(A) and direct the Assessing Officer to allow deduction u/s. 80(P)(2)(a)(i) of the Act in respect of commission income also. - Decided in favour of assessee.
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