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2020 (2) TMI 138 - AT - Income TaxDeduction of interest income from scheduled bank u/s 80P(2)(a)(i) - HELD THAT:- Issue settled by the Hon’ble Jurisdictional High Court in the case of State Bank of India [2016 (7) TMI 516 - GUJARAT HIGH COURT] and the assessee is not entitled for such deduction. This proposition was not even disputed by the assessee. Only thing which requires to be done is re-determination or quantification of amount which is to be disallowed out of interest income from the scheduled bank. AO shall work out the net interest income from the deposits with scheduled bank, and thereafter exclude that amount from the computation of deduction claimed under section 80P(2)(a)(i) of the Act. As far as interest income from cooperative bank/society is concerned in view of the decision of co-ordinate Bench, such income will qualify for grant of deduction under section 80P(2)(d) of the Act. The ld.AO shall work out net amount of such interest income, and thereafter grant deduction under section 80(2)(d) of the Act.
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