2024 (4) TMI 597 - AT - Income Tax

D eduction u/s 80P(2)(d) - interest received from the Co-operative Bank - gross interest calculation - HELD THAT - We note that issue under consideration is no longer res judicata and the interest received from Co-operative Bank is allowable deduction u/s 80P(2)(d) for that reliance is placed on the decision of Surat VankarSahakari Sangh Ltd 2016 (7) TMI 1217 - GUJARAT HIGH COURT wherein it was held that assessee-co-operative society was eligible for deduction under section 80P(2)(d) of the Act, in respect of gross interest received from co-operative bank without adjusting interest paid to said bank - Appeal of assessee allowed.

Summary

Issues:
The judgment involves appeals filed by the assessee for Assessment Year (AY) 2017-18 against separate orders passed by the Learned Commissioner of Income Tax (Appeals), Surat, National Faceless Appeal Centre, arising out of separate assessment/rectification orders u/s 154 and 143(3) of the Income Tax Act, 1961.

Delay Condonation Issue:
The appeal in ITA No.115/SRT/2024 for AY 2017-18 was barred by limitation by 386 days. The assessee moved a petition for condonation of delay citing reasons such as delay due to the disposal of rectification application taking longer time from the office of the CIT(A). The delay was condoned by the Tribunal as the reasons provided were considered convincing and constituted a reasonable and sufficient cause for the delay in filing the appeal.

Merits of the Appeal:
On the merits, the assessee claimed deduction u/s 80P(2)(d) of the Act for interest received from a Co-operative Bank. The Tribunal, after considering arguments from both parties, relied on the decision of the Hon`ble Jurisdictional High Court of Gujarat in the case of Surat Vankar Sahakari Sangh Ltd. The High Court held that the interest received from a Co-operative Bank is an allowable deduction under section 80P(2)(d) of the Act, without adjusting interest paid to the bank. The Tribunal, respecting the High Court's decision, allowed the appeal filed by the assessee in ITA No.115/SRT/2024 for AY 2017-18.

Conclusion:
The appeal in ITA No.35/SRT/2024, against the order u/s 154 of the Act, was rendered infructuous and dismissed since the appeal in ITA No.115/SRT/2024 was allowed. In summary, the appeal in ITA No.115/SRT/2024 for AY 2017-18 was allowed, while the appeal in ITA No.35/SRT/2024 was dismissed.