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2017 (12) TMI 879 - AT - Income TaxDeduction u/s 80P disallowed - interest income’ earned by the assessee on the deposits placed with the SBI - Held that:- As held by the Hon'ble Bombay High Court in the case of CIT vs. Godavaridevi Saraf reported in (1977 (9) TMI 24 - BOMBAY High Court), we are bound by the decision of the jurisdictional High Court on similar set of facts. Further, in the case of SBH Employees Co-operative Credit Society [2016 (7) TMI 516 - GUJARAT HIGH COURT], the Hon'ble jurisdictional High Court has held the issue in favour of the assessee. Respectfully following the same, we allow the assessee’s appeal and direct the AO to allow the deduction u/s 80P of the Act of the ‘interest income’ earned by the assessee on the deposits placed with the SBI, a nationalised bank. The learned DR had tried to distinguish the facts of the case before us with the above decision stating that in the case of the assessee, the interest is earned on FDR’s, while, in the case before the Hon'ble High Court, the deposits were not fixed deposits. However, from the assessment order, it is seen that the reserves and surpluses have been kept as deposits and there is no reference to ‘FDRs’ by the AO. Therefore, this distinction is not established. - Decided in favour of assessee.
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