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2021 (1) TMI 1277 - AT - Income TaxRectification of mistake u/s 254 - Deduction u/s 80-P(2)(d) - income received from investments made with Jaipur Central Co-operative Bank - whether the assessee has incurred any interest expenditure in earning the interest income? - HELD THAT:- As the issue of quantum of deduction u/s 80P(2)(d) i.e, whether the deduction to be allowed on gross or net interest income was under consideration by the Tribunal in each of the aforesaid three assessment years for which misc. application has been filed by the Revenue. In each of these years, the Revenue has challenged the eligibility of the assessee for claim of whole of the deduction u/s 80P(2)(d) whereas the assessee in its cross appeal has challenged the action of the CIT(A) in restricting the quantum of deduction eligible for deduction u/s 80P(2)(d) of the Act. Therefore, the issue raised in the misc. applications so filed by Revenue is clearly arising out of the grounds taken by the Revenue as well as the assessee before the Coordinate Benches and orders passed by the Coordinate Benches. We therefore donot see any legal infirmity in terms of raising the said issue by the Revenue before us by way of present misc. applications. For A.Y 2011-12 and A.Y 2012-13, the Coordinate Bench has held that there was no necessity to examine the issue as to whether deduction u/s 80P(2)(d) shall be allowed on the gross interest income on FDRs or it should be allowed on the net interest income as conceptually the deduction under section 80P(2)(d) has to be allowed on gross and not on net interest income as held by the Hon’ble Gujarat High Court in case of Surat Vankar Sahakari Sangh Ltd. [2016 (7) TMI 1217 - GUJARAT HIGH COURT] The Coordinate Bench therefore following the decision of Hon’ble Gujarat High Court allowed the deduction on gross interest income for respective assessment years. For A.Y 2014-15, the Coordinate Bench followed the aforesaid decision for A.Y 2011-12 and A.Y 2012-13 allowed the deduction on gross interest income. In this year, we find that the ld DR brought to the notice of Coordinate Bench, the decision of Hon’ble Rajasthan High Court in case of CIT vs Rajasthan Rajya Sahakari Upbhokta Sangh Ltd [1995 (1) TMI 33 - RAJASTHAN HIGH COURT] and the Coordinate Bench held that it has taken into consideration the decision cited by the Revenue authorities, however, given that Coordinate Bench in assessee’s own case has decided the matter recently for A.Y 2011-12 and A.Y 2012-13, it decided to follow the earlier decision and decided the matter in favour of the assessee. For A.Y 2016-17, the Coordinate Bench held that in the earlier decisions so rendered for A.Y 2011-12, AY 2012-13 and A.Y 2014-15, the Coordinate Benches have relied on the Hon’ble Gujarat High Court decision in case of Surat Vankar Sahakari Sangh Ltd vs ACIT (supra) and the decision of the Hon’ble Rajsthan High Court in case of Rajasthan Rajya Sahkari Upbhokta Sangh Ltd (supra), which has been brought to its notice by the ld. CIT DR, was not considered and being the decision of the Jurisdictional High Court, the same is binding on the Tribunal and therefore, to this extent the decision rendered by the Co-ordinate Bench for earlier years stand distinguishable. We agree with the contention advanced by the ld AR that the legal issue challenging the validity of order passed u/s 147 was earlier dismissed as infructious for A.Y 2011-12 and A.Y 2012-13 as the matter was only decided on merits and the same should be also be recalled and decided afresh. In the entirety of facts and circumstances of the case, we hereby recall the earlier orders so passed by the Coordinate Benches in [2019 (10) TMI 759 - ITAT JAIPUR] and subsequent order passed by the Tribunal in [2019 (9) TMI 1338 - ITAT JAIPUR] for A.Y 2014-15 for the limited purposes of adjudication of matter relating to quantum of deduction eligible for deduction u/s 80P(2)(d) as to whether the deduction should be allowed on gross interest or net interest income afresh taking into consideration the decision of the Hon’ble Jurisdictional High Court in case of Rajasthan Rajya Sahkari Upbhokta Sangh Ltd (supra) as well as adjudication of following grounds of appeal afresh as raised by the assessee in its respective cross-appeals:
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