TMI Blog2021 (10) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... ross income is to be considered for deduction under section 80P(2)(d) of the Act. In view of the above decision of SURAT VANKAR SAHAKARI SANGH LTD. [ 2016 (7) TMI 1217 - GUJARAT HIGH COURT] we expunge the words net interest used by us in the finding extracted (supra) and in its place expression gross interest income is to be read in the order of the Tribunal. In other words, the ld.AO would grant deduction under section 80P(2)(d) of the Act of whole interest income i.e. gross interest income. MA allowed. - Misc.Application No.139 and 141/Ahd/2020 IN ITA No.97 and 2019/Ahd/2017 Misc. Application No.140/Ahd/2020 IN ITA No.2018/Ahd/2017 - - - Dated:- 5-10-2021 - SHRI RAJPAL YADAV, HON BLE VICE-PRESIDENT AND SHRI WASEEM AHMED HON BLE A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Only thing which requires to be done is re-determination or quantification of amount which is to be disallowed out of interest income from the scheduled bank. The ld.AO shall work out the net interest income from the deposits with scheduled bank, and thereafter exclude that amount from the computation of deduction claimed under section 80P(2)(a)(i) of the Act. As far as interest income from cooperative bank/society is concerned in view of the decision of co-ordinate Bench, such income will qualify for grant of deduction under section 80P(2)(d) of the Act. The ld.AO shall work out net amount of such interest income, and thereafter grant deduction under section 80(2)(d) of the Act. 3. The ld.counsel for the assessee contended that the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s patent mistake, which is apparent from the record and not a mistake, which is required to be established by arguments and long drawn process of reasoning on points, on which there may conceivably be two opinions. The Hon ble Gujarat High Court in the case of Surat Vankar Sahakari Sangh Ltd., (supra) has considered an identical issue. One of the questions formulated by the Hon ble Court in Tax Appeal No.93 to 96 of 2008 read as under: Whether assessee-cooperative society was entitled under section 80P(2)(d) of the entire interest of ₹ 9,01,062/- received by it from the co-operative bank ? In paragraph-3 the Hon ble Court has noticed the facts as under: 3. In all the four appeals, the common issue is grant of net deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 80P(2)(d) can be allowed. To appreciate this argument, we have to look to the provisions of Section 80P(2)(d) of the Act, For facility of reference, it is reproduced as under : 80P. (2)(d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co- operative society, the whole of such income. 6. So far as the principle of interpretation applicable to a taxing statute is concerned, we can do no better than to quote the by-now classic words of Rowlatt J., in Cape Brandy Syndicate v. IRC [1921] 1 KB 64, 71 : ...In a taxing Act, one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law in allowing deduction under Section 80P(2)(d) of the Income- tax Act, 1961. in respect of interest of RS. 4,00,919 on account of interest received from Nawanshaln Central Co-operative Bank without adjusting the interest paid to the hank. Therefore, the reference is answered against the Revenue in the affirmative and in favour of the assessee.' 8.2 Moreover, the Bombay High Court in the case of Bai Bhuriben Lallubhai (supra) has held that the purpose for which the assessee borrowed money had no connection whether direct or indirect with the income which she earned from the fixed deposit and that she was not entitled to the deduction claimed under Section 12(2). The High Court held that if an assessee had no option except to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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