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2022 (8) TMI 1070 - AT - Income TaxDeduction u/s 80P - Amount of interest received from other than co-operative societies are not eligible for deduction - HELD THAT - We note that issue under consideration is no longer res-integra. The Hon ble High Court of Gujarat in the case of Surat Vankar Sahkari Sangh Ltd. 2016 (7) TMI 1217 - GUJARAT HIGH COURT has held that interest income received from Co-operative Bank is allowable u/s 80P(2)(d) - We note that assessee has not claimed Nationalized Bank interest in Section 80P (2)(d) it has only claimed Co-op Bank Interest and Co-op Dividend under section 80P(2)(d) of the Act. That is assessee-society has claimed deduction under section 80P(2)(d) of the Act on interest and dividend income received from Co-operative societies and Co-operative Bank. Therefore assessee-society is eligible to claim deduction u/s 80P(2)(d) of the Act as held by the Hon ble High Court of Gujarat in the case of Surat Vankar Sahkari Sangh Ltd. 2016 (7) TMI 1217 - GUJARAT HIGH COURT . Therefore we do not find any infirmity in the order of ld CIT(A).That being so we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. His order on this addition is therefore upheld and the grounds of appeal of the Revenue are dismissed.
Issues Involved:
- Disallowance under section 80P(2)(d) of the Income Tax Act - Appeal against the order of the Assessing Officer - Decision of the Learned Commissioner of Income Tax (Appeals)-1, Surat - Application of legal provisions regarding deduction u/s 80P(2)(d) Analysis: Issue 1: Disallowance under section 80P(2)(d) of the Income Tax Act The case involved a dispute regarding the disallowance of an amount claimed as deduction u/s 80P(2)(d) of the Income Tax Act. The Assessing Officer disallowed the deduction on the grounds that interest income received from sources other than cooperative societies was not eligible for deduction. However, the assessee claimed that the interest income received from cooperative banks was eligible for deduction under section 80P(2)(d) of the Act. Issue 2: Appeal against the order of the Assessing Officer The Revenue filed an appeal challenging the order passed by the Learned Commissioner of Income Tax (Appeals)-1, Surat, which had deleted the disallowance made by the Assessing Officer. The grounds of appeal raised by the Revenue questioned the correctness of the decision to delete the disallowance amounting to Rs.2,21,93,840/-. Issue 3: Decision of the Learned Commissioner of Income Tax (Appeals)-1, Surat The Learned Commissioner of Income Tax (Appeals)-1, Surat, considered the arguments presented by the assessee and observed that the interest income received from cooperative banks was eligible for deduction under section 80P(2)(d) of the Act. The decision was based on a detailed analysis of the legal provisions and previous judgments on similar issues. Issue 4: Application of legal provisions regarding deduction u/s 80P(2)(d) The Tribunal analyzed the provisions of section 80P(2)(d) of the Income Tax Act and referred to relevant case laws to determine the eligibility of the assessee for claiming deduction on the interest and dividend income received from cooperative societies and cooperative banks. The Tribunal upheld the decision of the Learned Commissioner of Income Tax (Appeals)-1, Surat, based on the interpretation of the law and precedents set by the Hon'ble High Court of Gujarat. In conclusion, the Tribunal dismissed the appeal filed by the Revenue, upholding the decision of the Learned Commissioner of Income Tax (Appeals)-1, Surat, regarding the eligibility of the assessee for deduction under section 80P(2)(d) of the Income Tax Act. The judgment emphasized the importance of consistent application of legal provisions and adherence to judicial precedents in tax matters.
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