TMI Blog2021 (12) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... both the assessment years. It is totally not discernable. AO further nowhere recorded the basic facts. In Assessment Year 2013-14, in paragraph No.3.1, he simply observed that assessee has gross receipt of ₹ 1,09,06,710/-; while the interest earned on deposits with other banks other than Co-Operative Society or Banks is shown at ₹ 43,78,709/-. It is pertinent to observe that if investment has been made with the Co-operative Bank, then it will qualify for deduction under Section 80P(2)(d) of the Act. Therefore, we allow both these appeal statistically and remit the issue to the file of the Assessing Officer for re-adjudication. The learned Assessing Officer shall examine the issue afresh in the light of judgment in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of ₹ 2,92,515/-. The facts in both the years are common; therefore, for the facility of reference, I take the facts from Assessment Year 2013-14. 4. The brief facts of the case are that the assessee is a Credit Co-operative Society engaged in the business of providing credit facility to its Members. It has filed its return of income on 28.09.2013 declaring total income at ₹ 8,290/- in Assessment Year 2013-14. In Assessment Year 2014-15, it has declared Nil income in the return filed on 26.11.2014. The case of the assessee was selected for scrutiny assessment in both the years. The learned Assessing Officer has recorded the finding that the assessee has earned interest income from nationalized bank, i.e., other than its Memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying for deduction needs to be worked out. On gross receipts of ₹ 1,16,86,839/-, total income is worked out of NIL. As such on gross interest receipt from non credit cooperative banks of ₹ 21,73,523/-, profit which would not quality for deduction u/s 80P(2)(a)(i) would work out to be ₹ 2,92,515/- (21,73,523 x 15,72,825 / 1,16,86,839). Same is therefore not considered for deduction and balance of ₹ 12,80,310/- is allowed as deduction u/s.8oP(2)(a)(i) of the Act. However, since the income to the tune of ₹ 2,92,515/- is treated as income under the head income from other sources, deduction of ₹ 50,000/- as per the provisions of section 80P(2)(c)(ii) is being allowed. Penalty proceedings u/s. 271(1)(c) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal statistically and remit the issue to the file of the Assessing Officer for re-adjudication. The learned Assessing Officer shall examine the issue afresh in the light of judgment of Hon ble Gujarat High Court in the case of State Bank of India vs. CIT, reported in [2016] 72 taxmann.com 64 and keeping in mind the provisions of Section 80P(2)(d) of the Act. It is also to be kept in mind that a co-operative bank first happens to be a society; therefore, interest income earned from investment with co-operative bank would qualify for grant of deduction under Section 80P(2)(d) of the Act. 7. With the above observations, the issues in both the appeals are remitted back to the file of the Assessing Officer. It is needless to say that the ob ..... X X X X Extracts X X X X X X X X Extracts X X X X
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