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2021 (9) TMI 1000 - AT - Income TaxDeduction u/s 80P - interest income earned on account of investments made with co-operative Banks, whether it is entitled to deduction either u/s 80P(2)(d) or u/s 80P(2)(a)(i) - HELD THAT:- Bangalore Bench of the Tribunal in the case of M/s.Vasavamba Cooperative Society Ltd. [2021 (8) TMI 706 - ITAT BANGALORE] had held that the assessee is not entitled to deduction either u/s 80P(2)(d) nor u/s 80P(2)(a)(i) of the I.T.Act with regard to the interest income earned from investments made with co-operative banks. The Bangalore Bench of the Tribunal in the case of M/s.Vasavamba Co-operative Society Ltd. (supra) had followed the judgment of the Hon’ble jurisdictional High Court in the case of Pr.Commissioner of Income-tax & Anr. v. Totagars Co-operative Sales Society [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] Thus hold that the assessee is not entitled to deduction u/s 80P(2)(d) nor u/s 80P(2)(a)(i) of the I.T.Act in respect of interest income earned from investments with Cooperative Banks. Deduction u/s 57 - whether the assessee has incurred any expenditure for earning interest income which is assessed u/s 56? - HELD THAT:- A.O. is directed to examine whether assessee has incurred any expenditure for earning interest income, which is assessed under the head `income from other sources’. If so, the same shall be allowed as deduction u/s 57 of the I.T.Act. The assessee is directed to co-operate with the department and furnish the necessary evidence for expeditious disposal of the matter
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