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2018 (9) TMI 287 - AT - Income TaxExemption u/s 80P - assessee-society has received interest from Saraswat Cooperative Bank Ltd., on making investment in FDR - Held that:- Saraswat Cooperative Bank Ltd., is a Cooperative Society. Therefore, the interest earned on by the assessee-society from its investment with the other Cooperative Society would be entitled for deduction under section 80P(2)(d) of the I.T. Act. The issue is covered in favour of the assessee-society by the Judgment of M/s. Totagars Cooperative Sale Society [2017 (1) TMI 1100 - KARNATAKA HIGH COURT] and other decisions of various Benches of the Tribunal referred to above. In this view of the matter, we set aside the Orders of the authorities below and delete the addition. Further claim of deduction under section 80P(2)(c)(ii) - Held that:- There is no prohibition on the powers of the appellate authority to consider the claim of assessee, if assessee is entitled for such relief in accordance with law. The assessee-society relied upon decision of Hon’ble Supreme Court in the case of CIT Mahalaxmi Sugar Mills Co. Ltd.[1986 (7) TMI 83 - SUPREME COURT] and CBDT Circular No.14(XL-35) Dated 11.04.1995 above, which provides that it is the duty of the A.O. to apply relevant provision of the Act for the purpose of determining the true figure of assessee’s total income and consequently, tax liability. CIT(A) should not have refuse to exercise his discretionary power in the matter. The assessee-society is entitled for deduction of ₹ 50,000/-. Set aside the orders of the authorities below and direct the A.O. to allow deduction of ₹ 50,000/- out of interest income in favour of the assessee-society. This ground of appeal of assessee is allowed.
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