2023 (2) TMI 802

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....ion claimed under chapter VIA i.e. deduction u/s 80P(2)(d). 2. The ld. PCIT erred on facts and in law in failing to consider the ld. AO had adopted a plausible course of action with reference to the prevailing law regarding deduction under chapter VIA vis-à-vis the precedents set by the Supreme Court and High courts. 3. The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds at the time of hearing of appeal." 2. In this case, the assessment order was completed by the ld. A.O after having conducted inquiry on the deduction claimed under Chapter VIA i.e. deduction u/s 80P(2)(d) of the Income-tax Act, 1961 (hereinafter referred to as the "Act"). The assessee is aggrieved with ....

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.... and gone through the relevant material on record. Insofar as the allowability of deduction u/s.8P(2)(a)(i) is concerned, we find that the Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr. CIT (ITA No.713/PUN/2016) decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has allowed similar deduction. In the said case, the Tribunal discussed the contrary views expressed by the Hon'ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income....

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....d that the assessee could not claim deduction u/s.80P(2)(d) of the Act. When we consider the effect of this decision, it turns out that the same is not germane to case under consideration in view of the position that the primary claim of the extant assessee is directly about the eligibility of deduction u/s.80P(2)(a)(i) of the Act. 6. Coming to the cases of eligibility of deduction u/s.80P(2)(d), the respective assessees are Cooperative credit societies engaged in providing credit facilities to its members. The ld. PCIT has held the assessment order to be erroneous and prejudicial to the interest of the Revenue only on the ground that the claim of deduction u/s.80P on interest income was not in order. In this regard, it is observed that t....