TMI Blog2010 (4) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... and includible in income merely because deduction under section 80P is provided, it cannot be assumed to be hit by section 14A. - Decided in favor of assessee. - ITA NO. 4827 (DELHI) OF 2009 - - - Dated:- 8-4-2010 - SHRI R.P. TOLANI, AND SHRI K.D. RANJAN, Repesented By: Smt. Kavita Bhatnagar for the Appellant. K.S.V.S Manian and K.V.S.R Krishna for the Respondent. R.P. Tolani, This is the Revenue's appeal filed against the order of the Commissioner of Income-tax (Appeals)XXIII, New Delhi, dated October 12, 2008 for the assessment year 2006-07. 2. The following effective grounds are raised : 1. On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) has erred in law a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rroneously held that it does not make a difference whether the income is exempt or deductible. The same being non-taxable, section 14A was not applicable. The Commissioner of Income-tax (Appeals) rightly considered the issue and deleted the same. Reliance was placed on the decision of the Hyderabad Bench of the Income-tax Appellate Tribunal in the case of V. C. Nannapaneni v. Asst. CIT [2005] 94 ITD 309 (Hyd.), for this proposition. Learned counsel for the assessee contends that the issue is covered in favour of the assessee by the decision of the Income-tax Appellate Tribunal, Delhi Bench-A in the assessee's own case in I. T. A. No. 1767/Del/2009 for the assessment year 2004-05. The relevant observations of the Bench are reproduced hereund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that farmer should have purchased KRIBHCO fertiliser. Thus there is a direct nexus between the premium paid and the sales of the assessee society." 6. We have heard the rival contentions. Apropos ground No. 1, it has not been disputed that income was derived by the assessee from co-operative banks and interest on deposits with the co-operative bank and the same are not exempt under section 10 and are includible in its income. Deduction, if any, is given by the statute under section 80P which pertains to deduction of income. The terms "exempt income" and "deduction from income" are two different propositions and a deduction from income will not amount to an exemption from income. Since both the above receipts of the assessee were not e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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