9911796707
TMI Blog2023 (6) TMI 1483X X X X Extracts X X X X X X X X Extracts X X X X ..... taken the following grounds of appeal: 1. That on the facts and circumstances of the case, the CIT(A) erred in upholding the action of the assessing officer in disallowing deduction of Rs. 16,86,273/- under section 80P(2)(a)(i) of the Income Tax Act, 1961 on the ground that interest income of Rs. 16,86,273/- earned from fixed deposits/investments with State Bank of India is not derived from business and was taxable under the head 'income from other sources', which is not eligible for deduction under that section. Appellant prays for allowing the same. 2. That appellant kept its fund in term-deposit in compliance of the provisions of West Bengal Cooperative Societies Act, which is mandatory for accepting deposits from its membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted for scrutiny and assessment was completed on 28.12.2016 u/s 143(3) of the Act. While framing the assessment, the ld. AO disallowed claim of assessee of Rs. 16,86,273/- u/s 80P of the Act by holding that since the assessee earned alleged interest amount from the SBI and same is not eligible for deduction u/s 80P of the Act. 3. Aggrieved by the above order, assessee preferred an appeal before the ld. CIT(A). However, the appeal of the assessee was dismissed. 4. Dissatisfied with the above order, assessee preferred an appeal before the Tribunal. 5. At the time of hearing, the ld. AR submitted before the bench that the ld. CIT(A) erred in upholding the action of assessee by disallowing claim of deduction u/s 80P(v)(ai) of the Act on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned by the assessee as income from other sources rather than treating it as business income in the hands of assessee and by doing so, he did not allow claim of the assessee u/s 80P(2)(ai) of the Act by treating interest income is not being business income. We further note that in the present case, assessee has not generated any surplus fund which has been invested with SBI but such deposit are made only to adhere compliance issued by Registry of Co-operative Society, Govt. of West Bengal. As per it, assessee was required to deposit 70% of total deposits, to be kept in NSC, fixed deposit/certificate of bank and by doing so, assessee earned interest income of Rs. 16,86,273/-. In view of the above, we find that alleged interest income earne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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