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2023 (4) TMI 282 - AT - Income TaxDeduction u/s 80P - interest income accruing to the assessee on account of investments with scheduled bank - HELD THAT - We find in assessee s appeal, the Tribunal 2023 (4) TMI 209 - ITAT BANGALORE has confirmed the disallowance claimed u/s 80P(2)(d) of the I.T.Act. However, the Tribunal by following the judgment of the Hon ble jurisdictional High Court in the case of Totgars Co-operative Sale Society Ltd. 2015 (4) TMI 829 - KARNATAKA HIGH COURT restored the matter to the A.O.Tribunal directed the A.O. to examine whether the assessee had incurred any expenses for earning the said interest income, which was being assessed as income from other sources u/s 56 of the I.T.Act, and if so, such expenditure ought to be allowed as a deduction u/s 57 . Matter restored to the files of the A.O. The A.O. is directed to consider the issue afresh Receipts from e-stamping eligible for deduction u/s 80P - The assessee submits that it had not claimed the receipts from e-stamping as a deduction u/s 80P and therefore, this ground does not survive. We restore the issue raised in ground No.2 to the files of the A.O. A.O. is directed to examine whether the assessee had claimed deduction with respect to the receipts from e-stamping and decide the matter in accordance with law. Benefit of section 80P with regard to credit facilities provided to the nominal members - Tribunal in assessee s appeal (supra) had restored the matter to the A.O as held in section 80P(2)(a)(i), the assessee is entitled to deduction related interest earned from nominal member. The verification is required related to investment to nominal members as per the activity of the trust in purview of Karnataka Co-op Society Act. Appeal filed by the Revenue is allowed for statistical purposes.
Issues involved: Condonation of delay in filing appeal, Deduction claimed under section 80P(1)(d) of the IT Act, Deduction claimed under section 80P(1) of the IT Act for receipts from Estamping, Verification of credit facilities provided to nominal members under section 80P of the IT Act.
Condonation of Delay in Filing Appeal: The appeal by the Revenue was directed against the CIT(A)'s order dated 21.11.2022 for the assessment year 2017-2018, with a delay of 24 days in filing. The Tribunal found sufficient cause in the affidavit of the Assessing Officer for the delay and condoned it, proceeding to dispose of the matter on merits. Deduction claimed under section 80P(1)(d) of the IT Act: The Revenue contended that the CIT(A) erred in not upholding the decision of the AO in withdrawing the deduction claimed under section 80P(1)(d) of the IT Act for interest income accrued from deposits with scheduled Banks. The Tribunal restored the matter to the AO for fresh consideration in line with the Tribunal's order in another appeal. Deduction claimed under section 80P(1) of the IT Act for receipts from Estamping: The Revenue argued that the CIT(A) erred in allowing the deduction claimed under section 80P(1) of the IT Act for receipts from Estamping, stating they were beyond the regular business operations and not covered by the principle of mutuality. The Tribunal directed the AO to reexamine whether the deduction was claimed and decide accordingly. Verification of credit facilities provided to nominal members under section 80P of the IT Act: The issue of whether the assessee is entitled to the benefit of section 80P of the IT Act for credit facilities provided to nominal members was raised. The Tribunal had remitted this issue back to the AO for adjudication in light of the observation made, and the Tribunal restored this ground to the files of the AO for further consideration. Conclusion: The appeal filed by the Revenue was allowed for statistical purposes, with the Tribunal directing the AO to reconsider the issues related to deductions claimed under section 80P of the IT Act and credit facilities provided to nominal members.
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