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2017 (12) TMI 1838 - AT - Income TaxDeduction u/s.80P of the Act on the interest income earned from nationalized banks - CIT (Appeals)-3 confirming the order of the AO holding that the amount of interest income earned on fixed deposits made with nationalized banks and co operative bank is not profits and gains attributable to the activity of providing credit facilities to members and hence not eligible for deduction under section 80P of the Act and thereby considering the amount of interest as income from other sources liable to be taxed under section 56 of the Act.- HELD THAT:- In this case, interest amount was received form Allahabad bank, Bank of Baroda and Baroda center Co-op. Bank respectively. From the details, it can be seen that the receipts of interest has been received from other than Co-operative organization i.e. from nationalized banks on FDRs, which is nothing but interest earned on surplus funds invested in bank deposits i.e. FDRs.. We direct the Assessing Officer to verify the assessee’s claims of pro rata expenses by examination the record to be shown for verification by the assessee and accordingly, netting of to be allowed. Appeal of assessee allowed.
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