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2021 (12) TMI 406 - AT - Income TaxDeduction u/s 80P - assessee has earned interest income from nationalized bank, i.e., other than its Members or other Co-operative Societies - HELD THAT:- Any interest income earned from its Members or any investments made with the co-operative societies will qualify for the grant of deduction under Section 80P(2) and 80P(2)(d) of the Act. AO has worked out exclusion of income from the eligible amount under some formula without disclosing what is exact interest amount earned from nationalized bank, what are the expenditure and how he has worked out the disallowance - findings of the learned Assessing Officer for both the assessment years. It is totally not discernable. AO further nowhere recorded the basic facts. In Assessment Year 2013-14, in paragraph No.3.1, he simply observed that assessee has gross receipt of ₹ 1,09,06,710/-; while the interest earned on deposits with other banks other than Co-Operative Society or Banks is shown at ₹ 43,78,709/-. It is pertinent to observe that if investment has been made with the Co-operative Bank, then it will qualify for deduction under Section 80P(2)(d) of the Act. Therefore, we allow both these appeal statistically and remit the issue to the file of the Assessing Officer for re-adjudication. The learned Assessing Officer shall examine the issue afresh in the light of judgment in the case of State Bank of India vs. CIT [2016 (7) TMI 516 - GUJARAT HIGH COURT] and keeping in mind the provisions of Section 80P(2)(d) of the Act. It is also to be kept in mind that a co-operative bank first happens to be a society; therefore, interest income earned from investment with co-operative bank would qualify for grant of deduction under Section 80P(2)(d) of the Act. The issues in both the appeals are remitted back to the file of the Assessing Officer. Appeals filed by the assessee are allowed for statistical purposes.
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