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2020 (3) TMI 1279 - ITAT AHMEDABADGrant of deduction u/s 80P(2)(a)(i) - interest income earned from the investments - HELD THAT:- In the present case, the assessee has earned income from the investment made with nationalized banks. Therefore, such income will not qualify for grant of deduction under section 80P(2)(a)(i) as well as under section 80P(2)(d) because it is not from cooperative society. If the component of income does not qualify for grant of deduction under section 80P(2)(a)(i), then such income should be computed on net basis; any expenditure relatable to earning of such income is to be allowed before calculating exclusion of such amount for the purpose of 80P(2)(a)(i) - Since interest income earned by the assessee was treated to be "income from other sources" under section 56, then, the assessee can claim deduction under section 57 - we direct the AO to allow expenditure for earning such interest income. AO has to determine the net interest income earned by the assessee after giving set off expenditure, and only thereafter that net income has to be excluded from the admissibility of deduction under section 80P(2) of the Act. Grounds of appeals of the assessee are partly allowed for the statistical purpose.
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