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2021 (8) TMI 1081 - AT - Income TaxAddition being interest on part amount receivable as corpus from developers - Addition on ground that the interest u/s 12.50% is due and since the assessee is following mercantile system of accounting, the said interest is chargeable to tax - HELD THAT:- CIT(A) has found that no interest was due during the impugned financial year. This is duly supported by ITAT order in assessee’s own case [2017 (2) TMI 1497 - ITAT MUMBAI] referred by learned CIT(A). Hence, we do not find any infirmity in the order of learned CIT(A) in this issue. Deduction u/s.80P(2)(c) - HELD THAT:- Main reason for disallowing the claim here is by his mistaken invocation of section 80P(4) of the Act. This has been duly settled in The Mavilayi Service Cooperative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT] that in the case of Cooperative societies this section cannot be invoked as they cannot be held to be cooperative bank. When they have a lease from RBI to this effect. Examining the learned CIT(A)’s order on the conspectus of aforesaid decisions, we do not find any infirmity in the order of learned CIT(A). Hence, we uphold the same. Disallowance of deduction u/s 80P(2)(d) made by the CPC Bangalore is beyond the scope of provisions of section 143(1) - Whether as per section 143(1)(a)(ii) of the Act an incorrect claim can be disallowed if such incorrect claim is apparent from any information in the return? - HELD THAT:- We do not find any infirmity in the order of learned CIT(A). We note that claim was due and proper. There was no reason that CPC would disallow the same. The date of filing of return being extended by CBDT, no adverse inference can be drawn that the assessee could not be eligible for deduction and claim which are allowable if return are filed within due date. The extension of due date makes the assessee eligible for all the claims, which are allowable when the return is filed within due date. Moreover, as rightly noted by learned CIT(A) in any case this was not something which could be denied under section 143(1) of the Act. Hence, we uphold the same.
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