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TMI Blog2019 (11) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of Hon ble Allahabad High Court in Chief CIT (Admn.) vs. Kisan Sahkari Chini Mills Ltd. [ 2004 (11) TMI 28 - ALLAHABAD HIGH COURT] , Clause (c) of Section 80P(2) of the Act would cover entire income of a cooperative society not covered by Clause (a) and (b). The income earned by the assessee on deposits of nationalized banks was treated as taxable income of the assessee in view of its ineligibility towards deduction under s.80P(2)(a)(i) of the Act. Consequently, the assessee is entitled for basic deduction as provided under s.80P(2)(c) of the Act against such interest income. - I.T.A. No. 1132/Ahd/2018, I.T.A. No. 1277/Ahd/2018 - - - Dated:- 29-11-2019 - SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SMT. MADHUMITA ROY, JUD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 50,000/- u/s 80P(2)(c) of the Act. (5) That alternatively the deduction of proportionate expenses to earn the interest income be allowed as deduction. 4. When the matter was called for hearing, the learned AR for the assessee submitted that the assessee is concerned only with Grounds Nos. 3 4 noted above. Ground Nos. 1, 2 5 are stated to be not pressed. 5. Ground Nos. 1, 2 5 are accordingly dismissed as not pressed. 6. As regards Ground No.3, it concerns eligibility of deduction claimed under s.80P(2)(d) of the Act on account of interest income received from investment made with co-operative banks. It was submitted on behalf of the assessee that the issue is squarely covered in favour of the assessee in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Bank of India (SBI) vs. CIT (2016) 72 taxmann.com 64 (Guj.). The learned AR thus contended that income taxed under the head income from other sources is clearly eligible for deduction under s.80P(2)(c) of the Act as it is income earned from activities other than what is specified in Clause (a) and Clause (b) of subsection (2) of Section 80P of the Act. 10. In the light of the decision of Hon ble Allahabad High Court in Chief CIT (Admn.) vs. Kisan Sahkari Chini Mills Ltd. [2005] 273 ITR 42 (All.), Clause (c) of Section 80P(2) of the Act would cover entire income of a cooperative society not covered by Clause (a) and (b). The income earned by the assessee on deposits of nationalized banks was treated as taxable income of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gation where the tax effect does not exceed the prescribed monetary limit which is now revised at ₹ 50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding ₹ 50 lakhs and therefore appeal of the Revenue is required to be dismissed in limine. 15. The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner. 16. In the result, the appeal of the Revenue is dismissed. 17. In the combined result, assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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