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2018 (12) TMI 1078 - AT - Income TaxEligible for deduction u/s. 80P(2)(a)(i) in respect of interest income on deposits with non co-operative banks - Held that:- We hold that the interest income received on FDRs with Bank of Maharashtra are eligible for deduction u/s 80P(2)(a)(i). The saving fund interest received by the assessee society is not eligible for the aforesaid deduction. AO assessment order relating to assessment year 2009-10 had mentioned that the interest income received by the assessee on FDRs with Bank of Maharashtra amounted to ₹ 1,03,72,581/-, on which the assessee is entitled to the aforesaid deduction, but the assessee is not entitled to claim the said deduction on interest on saving account with Bank of Maharashtra amounting to ₹ 878/-. In assessment year 2012-13, the AO has mentioned similar disallowance of the assessment order and accordingly, we hold that the assessee is entitled to claim the aforesaid deduction on interest income on fixed deposit with Bank of Maharashtra amounting to ₹ 2,02,33,008/-; however, the interest on saving account with Bank of Maharashtra amounting to ₹ 2,27,008/- is not entitled to the aforesaid deduction - Appeals of Revenue are partly allowed.
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