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Shree Balaji Urban Co-op. Credit Society Ltd Versus The Ito, Ward-2 (2) (4) Surat.

2016 (2) TMI 903 - ITAT AHMEDABAD

Entitlement to deduction u/s.80P(2)(a)(i) - Held that:- Interest earned by the assessee is eligible for deduction under section 80P - Decided in favour of assessee. - ITA.No.2610/Ahd/2015 - Dated:- 26-2-2016 - SHRI GEORGE GEORGE K., JUDICIAL MEMBER F .....

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grounds of appeal of the assessee are as under: 1. That on facts and in law the ld.CIT(A) has grievously erred in upholding that interest income of ₹ 3,24,209/- is taxable as income from other sources instead of business income. 2. That the ld. .....

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sue involved in this appeal is with regard to claim of deduction under section 80P of the Act. 4. The ld.representatives fairly agree that the issue is covered in favour of the assessee, by a decision of the Co-ordinate bench of this Tribunal in the .....

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erused the material on record. The issue in the present case is with respect to granting of deduction under 80P on the interest earned on the deposits kept with bank. It is an undisputed fact that the assessee is a co-operative society. It is assesse .....

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blwe KarH High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra) had decided the issue in favour of the assessee by observing as under: 10. In the instant case, the amount which was invested in banks to earn interest was .....

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, as there were no takers. Therefore, they had deposited the money in a bank so as to earn interest. The said interest income is attributable to carrying on the business of banking and therefore it is liable to be deducted in terms of Section 80P (1) .....

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horities denying the benefit of deduction of the aforesaid amount is unsustainable in law. Accordingly it is hereby set aside. The substantial question of law is answered in favour of the assessee and against the revenue. 8. We are of the view that t .....

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oresaid decision of Hon ble Karnataka High Court and in the absence of any contrary binding decision pointed out by Revenue, we are of the view that the interest earned by the assessee is eligible for deduction under section 80P. We therefore set asi .....

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