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2008 (9) TMI 493 - HC - Income TaxSpecial deduction under section 80P(2)(a)(i) – interest – The assessee a co operative society, carried on the business of marketing the agricultural produce of its members. In its return total income “nil”, claiming the deduction of ‘income from business’ u/s 80P(2)(a)(i). The assessment was reopened. The Assessing officer holding that income from deposits and income from bonds and securities was assessable as income from other sources and no deduction u/s 80P(2)(a)(i) was allowable. Held that- the assessee was not a co-operative bank and was not doing any banking business and admittedly, the interest received from the securities and deposits with banks other than co-operative banks was not relatable to the business of the assessee and consequently it did not qualify for deduction u/s 80P of the act. That the original records revealed that the previous permission of the Additional Commissioner had been obtained before issuing notice to the assessee. Thus the proceedings for reopening of the assessment under section 147 of the act were proper and notice issued u/s 148 of the act was valid.
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