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2023 (2) TMI 918 - ITAT PUNEDeduction u/s 80P(2)(d) - interest received by the co-operative society from co-operative bank - HELD THAT:- The view taken was that the interest received by the co-operative society from co-operative bank is eligible for deduction u/s 80P(2)(d) - assessee in that case was also a sugar co-operative society like that of the present assessee. DR before us could not bring any evidences/documents supporting Revenue contrary to the facts existing on record. Therefore, on the same parity of reasoning, the relief granted already to the assessee on this issue is sustained. Ground No.1 of Revenue is dismissed. Disallowance of ceremony expenses - AO had disallowed ceremonial expenditure on the ground that it is not related to the business purpose of the assessee or exclusively for commercial expediency in functioning of the assessee”s business - HELD THAT:- These functions give a moral boost to the working efficiency of the employees. At the same time, they cannot be expected to contribute for these functions. The expenses for the ceremony and functions are borne by the assessee and in so much as they are intrinsically weaved within the basic functioning of the assessee's business, hence should be allowable as business expenses. CIT(A) of his order while providing relief on this issue to the assessee directed the AO to delete the addition stating that such kind of functions create harmony amongst the workers and management. These ceremonies are required to be performed on account of tradition and to certain extent as compulsion since these functions are followed in every sugar factory. The expenses have to come from the account of assessee only. It cannot be expected to be collected from the employees. These expenses take the colour and character of business expenses. We are in conformity with the finding of learned CIT(A) and the same is upheld. Ground of Revenue is dismissed.
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