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2023 (12) TMI 865 - AT - Income TaxRectification u/s 154 - AO is seeking to disallow the claim of deduction u/s 80P to the extent of interest income, earned from banks - HELD THAT:- It is admitted fact that interest income received from Corporation Bank. Interest income received from a Bank cannot be allowed as a deduction under sections 80P(2)(a)(i) or 80P(2)(d) of the Act in the light of the judgment of PCIT Vs. Totgars Co-operative Society Ltd [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] Limited prayer of the assessee in this appeal is to be provide deduction of cost of funds and proportionate administrative expenses as a deduction under section 57 of the Act for interest income assessed as “Income from Other Sources”. This prayer of the assessee has been accepted by the jurisdictional High Court in the case of Totgars Co-operative Society Ltd., Vs. ITO [2015 (4) TMI 829 - KARNATAKA HIGH COURT] In light of the above AO is directed to allow cost of funds and proportionate administrative expenses for earning interest income as deduction under section 57 of the Act. It is ordered accordingly.
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