TMI Blog2018 (9) TMI 2105X X X X Extracts X X X X X X X X Extracts X X X X ..... on short term deposits kept with banks has to be allowed as deduction u/s 80P(2)(a)(i). AO was not justified in denying the appellant's claim of deduction u/s 80P(2)(a)(i) - In the result, the claim of the appellant u/s 80P(2)(a)(i) of the Act for the year under consideration is allowed. We are of the opinion that the assessee is entitled to deduction u/s.80P(2)(a)(i) in respect of the interest income earned on fixed deposits kept with the Nationalized Banks/Scheduled Banks and the same constitute as business income of the assessee. We therefore uphold the order of CIT(A) and direct the AO to allow the claim of assessee. Grounds raised by the Revenue are dismissed and in favour of the assessee. - ITA 2827/PUN/2016 - - - Dated:- 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the Hon'ble Apex Court's decision in Totgars Co-op Sale Society Ltd Vs. ITO reported as 322 ITR 283 (SC), ignoring the clear provisions of section 80P(2) (d) of the Income Tax Act, 1961, wherein income by way of interest or dividend derived by Co- operative Society from its investment with any other Co-operative Society is eligible for deduction and not income by way of interest from banks other than Co-operative banks/societies? 3. The appellant craves leave to add, alter, amend, substitute or delete any of the grounds urged herein above as and when found necessary. 4. Briefly stated relevant facts of the assessee are that the assessee is a Co-operative credit society engaged in the business of providing banking or credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operative banks/societies. Ld. DR has placed reliance on the decision of Honble Apex Court in the case of Totgars Co-op. Sale Society Ltd. Vs. ITO, reported as 322 ITR 283(SC). 7. After hearing the Ld. DR for the Revenue and perusing the orders of the Revenue and the material available on record, we find the core issue raised in the appeal relates to taxation of interest income earned from the fixed deposits kept with the banks (Bank of India and HDFC Bank) other than co-operative banks/societies. AO is of the opinion that the said income is taxable and the exemption u/s.80P(2)(a)(i) of the Act is not available to such receipts. CIT(A) granted relief to the assessee relying on the decision of the Tribunal in the assessees own case in IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s order cited supra. Therefore, respectfully following the decision of the jurisdictional Tribunal, in appellant's own case for assessment years 2010-11 and 2012-13, I hold that the assessing officer was not justified in denying the appellant's claim of deduction u/s 80P(2)(a)(i) of the Act. In the result, the claim of the appellant u/s 80P(2)(a)(i) of the Act for the year under consideration is allowed. Considering the precedent on the same issue by the Co-ordinate Bench of the Tribunal, we are of the opinion that the assessee is entitled to deduction u/s.80P(2)(a)(i) in respect of the interest income earned on fixed deposits kept with the Nationalized Banks/Scheduled Banks and the same constitute as business income of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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