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2019 (11) TMI 690 - AT - Income TaxRevision u/s 263 - Denial of claim u/s 80(P)(2)(d) - HELD THAT:- In the instance case, there is no dispute that Ajmer Central Cooperative Bank Ltd is a co-operative society. Therefore, in light of the aforesaid discussions, for the purposes of section 80P(2)(d) it shall be treated as a co-operative society. Therefore, interest on FDRs placed by the assessee society with such cooperative society shall be eligible for deduction u/s 80P(2)(d) of the Act. Whether by virtue of provisions of Section 80P(4) of the Act, the claim of the assessee under section 80(P)(2)(d) can be denied to the assessee society? - HELD THAT:- By virtue of provisions of Section 80P(4) of the Act, the claim of the assessee under section 80(P)(2)(d) cannot be denied to the assessee society as the deposits have been placed by the assessee co- operative society with Ajmer Central Co-operative Bank Ltd which is registered as a co-operative society and retains the same character even though it is carrying on the banking business. Even though the AO has not examined the matter relating to deduction so claimed by the assessee, the order passed by the Assessing officer wherein he has allowed the deduction u/s 80(P)(2)(d) on interest on FDRs placed with Ajmer Central Co- operative Bank Ltd cannot be held as erroneous in view of the aforesaid discussion wherein there cannot be any dispute regarding claim of the deduction u/s 80(P)(2)(d) of the Act. In light of the same, the impugned order passed by the Pr CIT passed u/s 263 of the Act is set-aside and matter is decided in favour of the assessee.
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