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2020 (2) TMI 210 - AT - Income TaxQuantification of deduction admission u/s 80P(2)(a)(i) and 80P(2)(d) - HELD THAT:- In Vir Transport Operator Co-op Credit & Services Society Ltd. [2018 (12) TMI 1313 - ITAT AHMEDABAD] held only thing which requires to be done is redetermination or quantification of amount which is to be disallowed out of interest income from the scheduled bank. The ld.AO shall work out the net interest income from the deposits with scheduled bank, and thereafter exclude that amount from the computation of deduction claimed under section 80P(2)(a)(i) of the Act. As far as interest income from cooperative bank/society is concerned in view of the decision of coordinate Bench, such income will qualify for grant of deduction under section 80P(2)(d) of the Act. The ld.AO shall work out net amount of such interest income, and thereafter grant deduction under section 80(2)(d). Assessee has filed its return of income at NIL after claiming deduction under section 80P(2)(a)(i) - addition has been made on the ground that the assessee has claimed deduction with respect to income earned from deposits made with scheduled bank - HELD THAT:- Direct the AO to re-adjudicate the issue and only exclude net interest income from nationalised bank from computation of income admissible under section 80P(2) of the Act. The AO shall adjudicate this issue after providing due opportunity of hearing to the assessee. Deduction u/s 80P(2) for deduction of interest income earned from scheduled bank - HELD THAT:- Assessee is covered by the decision of Hon’ble jurisdictional High Court in the case of State Bank of India Employees Coop Credit Ltd. [2016 (7) TMI 516 - GUJARAT HIGH COURT] wherein it has been held by that cooperative society would not be eligible under section 80P(2) of the Act for deduction of interest income earned from scheduled bank. Further, assessee has agreed to proportionate disallowance to the extent of bank interest to total income. Disallowance which the assessee has received from its members towards form fee, cannot doubted to be not attributable to and/or arising from assessee’s day-to-day activities of the assessee. Therefore, allow this claim of the assessee and delete disallowance. Allowance of standard deduction claimed by the assessee under section 80P(2)(c) of the Act, the same being statutory deduction, the assessee will be entitled for the same.
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