TMI Blog2022 (10) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... pply in the facts and the circumstances of the present case. The assessee is engaged in the business of providing credit facilities to its members and no other income accrues to the Society in the form of interest from investment and surplus fund to the co-operative bank. The Hon ble High Court directed the Assessing Officer to allow primary expenses in respect of interest on deposit held with Nationalised Bank to the assessee for computing deduction under Section 80P after examining/verification and affording adequate opportunity to the assessee. The present assessee s case before us also is identical to that of the issues dealt by the Hon ble Jurisdictional High Court and, therefore, we direct the Assessing Officer to allow proporti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of nil after claiming deduction under Section 80P(2) of the Act of Rs.5,08,211/-. The case was selected for scrutiny by issue of notice under Section 143(2) of the Act on 23.08.2017 which was duly served. Notice under Section 142(1) read with Section 129 of the Act was issued on 21.06.2018. In response to the above the assessee submitted reply dated 08.08.2018. The Assessing Officer passed assessment order thereby making disallowance in respect of proportionate interest under Section 80P of the Act claimed by the assessee. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that on verification of assessment order under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge its character irrespective of the fact whether such income of interest is earned from a schedule bank or a co-operative bank and thus clause (d) of Section 80P(2) of the Act would not apply in the facts and the circumstances of the present case. The assessee is engaged in the business of providing credit facilities to its members and no other income accrues to the Society in the form of interest from investment and surplus fund to the co-operative bank. The Hon ble High Court directed the Assessing Officer to allow primary expenses in respect of interest on deposit held with Nationalised Bank to the assessee for computing deduction under Section 80P after examining/verification and affording adequate opportunity to the assessee. The pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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