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2018 (3) TMI 224 - HC - Income TaxDeduction u/s 80P(2)(a)(i) denied - interest income from bank deposits is not business income but is income from other sources - Held that:- The judgment relied upon by the revenue in the case of Totgar’s Co-perative Sale Society Limited [2010 (2) TMI 3 - SUPREME COURT ] deals with Section 80P(2)(d). As aforesaid, Section 80P(2)(d) and Section 80P(2)(a)(i) of the Act being different, the said judgment is not squarely applicable to the facts of the present case. The applicability of Section 80P(2)(a)(i) of the Act has to be considered in terms of the said section. The authorities mixing up the issue of Section 80P(2)(a)(i) and Section 80P(2)(d) cannot reject the claim of the assessee under Section 80P(2)(a)(i) of the Act without giving a proper finding on the issue. It is prima facie apparent on record that AO proceeded to compute the income of ₹ 25,08,170/- despite the same being accounted by the assessee in the consolidated income and expenditure account for the income returned by the assessee at ₹ 11,66,894/-. Income cannot be enhanced to ₹ 25,00,000/- for the purpose of levying income tax without considering the actual figures arrived at by the assessee returned while declaring the taxable income. Hence, on this ground also the computation made by the Assessing Officer requires to be reconsidered. Thus the order of the Tribunal as well as the authorities are set aside and the matter is remanded to the Assessing Officer for fresh consideration. All rights and contentions of the parties are left open. The Assessing Officer shall provide an opportunity of hearing to the assessee and pass appropriate orders in the light of the judgment of the Hon’ble Apex Court. Substantial question of law is not answered.
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