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TMI Blog2021 (2) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... on this issue in both the years under consideration and restore them to the file of the A.O. in both the years for examining it afresh as discussed above. Deduction claimed u/s 80P(2)(d) in respect of interest income earned from fixed deposits kept with bank - AO assessed the interest income received on bank deposits under the head Income from other sources and denied deduction claimed u/s 80P(2)(d) - HELD THAT:- Tribunal was not right in coming to the conclusion that the interest earned by the appellant is an income from other sources without allowing deduction in respect of proportionate cost, administrative expenses incurred in respect of such deposits. Accordingly, the Ld. A.R. prayed that the A.O. may be directed to allow deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Beena Pillai, Judicial Member For the Appellant : Shri Ravishankar S.V., A.R. For the Respondent : Shri Kannan Narayanan, D.R. ORDER PER B.R. BASKARAN, ACCOUNTANT MEMBER: Both the appeals filed by the assessee are directed against the common order dated 12.06.2019 passed by Ld CIT(A), Mangaluru and they relate to the assessment year 2015-16 and 2016-17. Since certain common issues are urged in these two appeals, both the appeals were heard together and are being disposed of by this common order, for the sake of convenience. 2. The first common issue urged by the assessee in both the years relate to rejection of claim of deduction under 80P(2)(a)(i) of the Income-tax Act,1961 ['the Act' for short]. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice Co-operative Bank Ltd. Vs.CIT (2021) 123 taxmann.com 161 (SC). He submitted that the Hon ble Supreme Court has held that the expression Members is not defined in the Income-tax Act. Hence, it is necessary to construe the expression Members in section 80P(2)(a)(i) of the Act in the light of definition of that expression as contained in the concerned co-operative societies Act. The Ld. A.R. submitted that the Hon ble Supreme Court has considered the decision rendered by it in the case of Citizen Co-operative Society Ltd. (supra) and observed that the ratio decidendi of Citizen Co-operative Society Ltd. must be given effect to. Accordingly, he submitted that the assessee should be allowed deduction u/s 80P(2)(a)(i) of the Act. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s 80P(2)(a)(i) of the Act. In AY 2016- 17, the AO assessed the interest income received on bank deposits under the head Income from other sources and denied deduction claimed u/s 80P(2)(d) of the Act. The Ld CIT(A) confirmed the action of the AO on this issue. 8. The Ld. A.R. submitted that the assessee is entitled to claim deduction allowable u/s 57 of the Act in respect of cost of funds and proportionate administrative and other expenses. In support of this submission, the Ld. A.R. placed reliance on the decision rendered by Hon ble High Court of Karnataka in the case of Totgars Co-operative Sale Society Ltd. Vs. ITO (2015) 58 taxmann.com 35 (Karn). The Ld. A.R. submitted that the assessee in the above said case had put f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 2015-16 in respect of disallowance of provision for bad debts of ₹ 1 lakh and provision for centenary fund ₹ 3 lakhs. We notice that the A.O. had made the above said disallowances in assessment year 2015-16, but the assessee had omitted to challenge the above said additions before Ld. CIT(A). Hence the assessee has raised the above said issues before us by way of additional grounds. We are of the view that both the above said issues require fresh consideration at the end of the A.O., since the main issues have been restored to the file of the A.O. and the decision taken on them may have impact on the above said two additions. Accordingly, we restore both the above said issues to the file of the A.O. for examining them a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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