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2022 (4) TMI 1384 - AT - Income TaxDisallowance of deduction u/s 80P(2)(d) - Consideration of interest income received from Axis Bank - income from other sources OR income from business or profession - HELD THAT:- There is no dispute at the end of the assessee that interest income has been earned from term deposit/other deposits with scheduled banks or other banks other than cooperative banks. There is no iota of evidence which could show that the interest income has any connection with the income from its members. As relying on M/S. PANDITPUR SAMABAY KRISHI UNNAYAN SAMITY LTD [2022 (4) TMI 1347 - ITAT KOLKATA] clearly states that such interest income which is earned from other banks and not earned from members of the Society or from deposits with any other cooperative Society no deduction is allowable u/s 80P(2) of the Act. Only any expenditure incurred to earn such income not eligible for deduction u/s 80P(2) of the Act can be claimed. In the instant case, the interest income from banks other than cooperative banks/cooperative Societies/members is ₹ 23,00,239/-. The net profit shown in the profit & loss account is only ₹ 6,96,233/-. Though details of profit & loss account have not been placed on record but even otherwise against the interest income from banks, deduction of ₹ 16,04,006/- has already been claimed by the assessee, there hardly remains any case for the assessee to claim any other benefit. AO has already allowed deduction of ₹ 50,000/- against the net profit of ₹ 6,96,233/-. The alternative submission of the assessee is that the disallowance should be restricted only to 3.12% being the net profit rate to be applied on the interest income of ₹ 23,00,239/- cannot stand for as the assessee has already claimed an expenditure of ₹ 16,04,006/- against the interest income of ₹ 23,00,239/-. We, therefore, confirm the finding of the ld. CIT(A) sustaining the addition made by the AO and dismiss the ground nos. 2 & 3 raised by the assessee. CIT(A) rightly dismissed the claim of deduction u/s 80P interest income received from Axis Bank, Kalna Branch by the appellant. We, therefore, confirmed the finding of the ld. CIT(A) sustaining the addition - Decided against assessee.
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