TMI Blog2023 (4) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... aid proportionate expenditure should be allowable or not needs to be verified. Therefore, this issue is set aside to the file of the Assessing Officer for proper adjudication and verification. Ground no.2 is partly allowed for statistical purpose. Interest received from Co-operative Banks - It is pertinent to note that it is not disputed fact that the interest of Rs.11,23,088/- was not received by the assessee from Co-operative Banks which are registered under Co-operative Societies Act and as per the decision of Hon ble Gujarat High Court in the case of Surat Vankar Sahakari Sangh Limited [ 2016 (7) TMI 1217 - GUJARAT HIGH COURT ] interest received from Co-operative Banks are allowable for deduction under Section 80P(2)(d) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80P(2)(d). It is submitted that the disallowance is justified on facts and law and the same be deleted. 4. Without prejudice to the above it is submitted that the Ld. CIT(A) has erred in confirming disallowance interest received from other Cooperative Banks (being co-operative societies) inspite of the fact that the same are being consistently allowed by Ahmedabad Tribunals and Gujarat High Court. Such addition is totally disregarded to a settled law. It is submitted that such incorrect and illegal addition of Rs.11,23,088/- be deleted. 3. The assessee is a Co-operative Credit Society engaged in providing credit facility to its members. The assessee is registered under Co-operative Societies Act. Return of income was filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, ground no.1 is dismissed. 8. As regards ground no.2, the Ld. AR submitted that without prejudice to the earlier submissions the CIT(A) who have taken into account that the interest received from Nationalised Banks are not allowable under Section 80P of the Act then proportionate expenditure to earn such interest must be allowed. 9. The Ld. DR submitted that the plea taken by the assessee is for the first time and the same should not be taken into account. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). 10. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the interest received from Nationalised Banks are not allowable under Section 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
