Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (6) TMI 939 - AT - Income TaxIssues Involved: The judgment involves the denial of deduction claimed under section 80P of the Income Tax Act, 1961 for interest and investment income. Issue 1: Denial of Deduction under Section 80P: The assessee challenged the order passed by the Commissioner of Income Tax (Appeals) regarding the denial of deduction claimed under section 80P of the Act for the assessment year 2021-22. The assessee's appeal raised concerns about the non-grant of deduction and the inadvertent error made while filing the income tax return. The initial deduction claimed of Rs. 4,07,859 was restricted to Rs. 40,115, leading to a total income assessment at Rs. 3,67,740. Issue 2: Interpretation of Section 80P: The Tribunal analyzed the provisions of section 80P of the Act, specifically focusing on section 80P(2)(d) related to income by way of interest or dividends derived from investments with co-operative societies. The Tribunal highlighted the requirements for claiming deduction under this section, emphasizing that the income should be earned from investments with other co-operative societies. Issue 3: Precedents and Legal Interpretations: The judgment referred to legal precedents and interpretations related to section 80P of the Act. It cited cases where interest income earned by co-operative societies from investments with co-operative banks was deemed eligible for deduction under section 80P(2)(d). The Tribunal noted that the denial of deduction in the present case was unfounded based on legal precedents and the specific provisions of the Act. Conclusion: The Tribunal upheld the plea of the assessee and directed the Assessing Officer to grant the deduction under section 80P(2)(d) for the interest income earned from investments with Co-operative Banks. The impugned order was set aside, and the grounds raised by the assessee were allowed, resulting in the appeal being allowed in favor of the assessee.
|