9911796707
TMI Blog2019 (11) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961 (the Act). 2. We shall first take up assessee's appeal in ITA No. 1132/Ahd/2018 concerning AY 2014-15. ITA No. 1132/Ahd/2018 - AY 2014-15 (Assessee's Appeal) 3. The grounds of appeal raised by the assessee read as under: "(1) The order passed u/s 250 of the act on 14/02/2018 for A.Y. 2014-15 by CIT (A)-4, Vadodara upholding the disallowance u/s 80P(2)(a)(i) of the Act Rs. 89,50,885/- made by Assessing Officer is illegal, unlawful and against the principles of natural justice. (2) That the facts and circumstances of the case as well as in law the learned CIT (A) ought not to have upheld disallowance of Rs. 89,50,885/- u/s 80P(2)(a)(i) of the Act, which includes the interest from another co. op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment made in this bank and interest earned. This investment is eligible for deduction under s.80P(2)(d) of the Act. 7. In the given facts as noted above, the claim of the assessee under s.80P(2)(d) of the Act appears to be in consonance with the plain language of the Act. We thus find merit in the claim of the assessee for deduction under s.80P(2)(d) of the Act in respect of income earned from K.D.C.C. Bank. 8. Ground No.3 of the assessee's appeal is allowed. 9. Ground No.4 concerns eligibility of basic deduction to the extent of Rs. 50,000/- under s.80P(2)(c) of the Act on the taxable interest earned from nationalized banks and not covered for deduction under s.80P(2)(a)(i) of the Act from the gross total income. In this connecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) erred in facts and law in directing AO to verify the assessee's claim of pre-rata/proportionate expenditure from interest income shown by the appellant and allow the said claim of expenditure after due verification, as the assessee has failed to prove the nexus between the expenses claimed to be incurred to earn the interest income disallowed of Rs. 89,50,885/-." 14. At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. It is inter alia noticed that the CBDT vide Instruction No. F. No. 279/Misc/M-93/2018-ITJ dt. 20/08/2019 has observed that Circular No.17 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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