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2022 (4) TMI 395 - AT - Income TaxRevision u/s 263 by CIT - Admissibility of deduction u/s.80P(2)(d) - As per CIT AO has erred in not allowing deduction u/s.80P(2)(d) of the Income Tax Act, 1961 without properly verifying the details of investee - HELD THAT:- We are unable to concur with the view taken by the lower authorities in so far the declining of the assessee’s society claim for deduction u/s 80P(2)(d) qua the interest received on its investments with co-operative banks. In our considered view as a Cooperative bank falls within the realm of the definition of a “Co-operative Society” as contemplated in Section 2(19) of the Act, therefore, the view taken by the lower authorities that interest income received by the assessee from Belgaum Industrial Co-Op Bank Ltd; and Belgaum District Central Co-Op Bank Ltd. i.e co-operative Banks, would not be eligible for deduction u/s. 80P(2)(d) cannot be sustained. We not being able to persuade ourselves to subscribe to the view taken by the lower authorities, thus, vacate the disallowance of the assessee’s claim for deduction u/s.80P(2)(d) Whether the lower authorities had erred in declining the assessee’s claim for deduction u/s. 80P(2)(e) i.e., without properly verifying the “lease deeds” and wrongly construing the purpose for which the godowns and sheds had been let out? - On a perusal of the confirmations of the aforementioned parties that have been filed by the assessee before the lower authorities, we find that it has specifically been stated by the respective parties that the premises in question were being used by them as godowns for storing/stocking various materials. Backed by the aforesaid facts, we are of the considered view that the lower authorities had grossly erred in loosing sight of the aforesaid material documentary evidence while adjudicating the issue in hand. We, thus, in all fairness restore the issue to the file of the Assessing Officer with a direction to re-adjudicate the assessee’s claim for deduction u/s.80P(2)(e) after taking due cognizance of the documentary evidence i.e. confirmations of the respective tenants - Ground raised by the assessee is allowed for statistical purposes in terms of our aforesaid observations.
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