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2018 (4) TMI 1516 - AT - Income TaxDeduction u/s 80P(2)(d) - interest on deposits made with the Bank - mutual cooperative society - assessee has filed the return of income after conducting the survey - income escaping assessment u/s 147 - Held that:- In the instant case, the assessee has made deposits with the Karnataka Bank Limited, which is not member of the society and the same is not to be allowed as a deduction u/s 80P(2)(d) of the Act. Therefore, the entire interest income derived by the assessee from the Karnataka Bank Limited is taxable. This view is supported in M/s. The Totgars´ Cooperative Sale Society Limited case [2010 (2) TMI 3 - SUPREME COURT] and M/s. BANGALORE CLUB [2013 (1) TMI 343 - SUPREME COURT] The assessee in the paper book furnished in the returns of income but not furnished the actual amount of interest received by the assessee from the Karnataka Bank Limited. A.O also has not given any finding on the interest received by the assessee from the banks. Even though the interest received on mandatory deposits the same is taxable. The case should be remitted back to the file of the A.O. to examine the nature of receipts which are exempt on principle of mutuality basis and taxable receipts such as interest received from Karnataka Bank and any other receipts and determine the true and correct income as per law. Appeals filed by the assessee allowed for statistical purposes.
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