Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 1274 - AT - Income TaxRevision u/s 263 - disallowing deduction u/s 80P(2)(a)(i) - whether the said interest earned on the said deposits was “business profits” and eligible for deduction u/s 80P(2)(a)(i)? - HELD THAT:- The provisions of section 80P(2)(d) of the Income Tax Act, 1961, clearly provide deduction on interest from investment with any other Co-operative Society only whereas the disputed interest income has not been earned from any Co-operative Society. In this connection, the Ld. Pr. CIT has rightly placed reliance on the judgment of the Hon’ble Jurisdictional Punjab and Haryana High Court, in the case M/s Punjab State Co-operative Federation of Housing Building Societies Ltd., [2011 (5) TMI 219 - PUNJAB AND HARYANA HIGH COURT] wherein the Hon’ble High Court, following the judgment of Hon’ble Supreme Court, in the case of The Totgars Co-operative Sale Society Ltd [2010 (2) TMI 3 - SUPREME COURT] have held that interest received by the assessee from Commercial banks was not covered by Section 80P(2)(a)(i) of the Act and was taxable under section 56, being income from other sources. The assessment order in not adding such interest to the total income, can be construed as prejudicial to the interest of revenue because such interest income is charged to Tax as income from other sources in the context of the assessee due to the non-availability of deduction u/s.80P(2)(d) on such amount. We, therefore, hold that the Ld. Pr.CIT was justified in revising the assessment order. The impugned order is upheld.
|