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2019 (12) TMI 303 - AT - Income TaxDeduction u/s 80P - Revenue’s case is that the Assessing Officer had rightly disallowed the assessee’s impugned section 80P(2)(a)(i) deduction claimed since its interest income had been derived from fixed deposits with nationalized bank here only - HELD THAT:- We find that this tribunal’s yet another in COMMISSIONER OF INCOME TAX VERSUS M/S EXCEL INDUSTRIES LTD. AND MAFATLAL INDUSTRIES P. LTD. [2013 (10) TMI 324 - SUPREME COURT] holds that such an interest income derived from fixed deposits made in nationalized banks is not entitled for the impugned deduction claimed. We adopt the above detailed discussion mutatis mutandis to decide the instant issues in Revenue’s favour to restore the impugned section 80P(2)(a)(i) deduction disallowance of ₹ 6,97,20,658/- made by the Learned Assessing Officer. AR submitted that the impugned section 80P deduction disallowance deserved to be computed on netting basis since the assessee has not only derived its interest income from fixed deposits in nationalized banks but has also incurred corresponding interest expenses as well. Learned CIT-DR is equally fair that the instant netting issue sought to be raised at the assessee’s behest, be restored to the Assessing Officer for appropriate computation. We therefore direct the Assessing Officer to compute the impugned section 80P(2)(a)(i) disallowance in assessee’s case going by the netting method within three effective opportunities of hearing.
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