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TMI Blog2018 (12) TMI 1926X X X X Extracts X X X X X X X X Extracts X X X X ..... ot allowing deduction u/s.80P on interest income earned from banks under similar circumstances. Both the Hon ble High Courts have taken into consideration the ratio laid down in the case of Totgar s Cooperative Sale Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] . There being no direct judgment from the Hon ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view taken in favour of the assessee by the Hon ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). Thus respectfully following the precedent, we overturn the impugned order in not allowing deduction u/s.80P on the interest income and direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing credit facilities to its members. During the course of assessment proceedings, the AO observed that the assessee earned interest income of ₹ 4,28,999/- on FDRs placed with IDBI Bank and Axis Bank, on which deduction was claimed u/s.80P of the Income-tax Act, 1961 (hereinafter also called `the Act ). The AO negatived the assessee s claim of deduction on such interest income, which action came to be echoed in the first appeal. 4. I have heard both the sides and perused the relevant material on record. The only issue in this appeal is whether interest income earned from FDRs with the nationalized banks is eligible for deduction u/s 80P of the Act? The Pune Bench of the Tribunal in the case of Shri Laxmi Narayan Nagari Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t income and direct to grant deduction on such interest income. ITA No. 560/PUN/2018 A.Y. 2014-15 : 5. The first issue raised in this appeal is against the denial of deduction u/s. 80P of the Act in respect of interest amounting to ₹ 5,33,321/- earned from fixed deposit receipts kept with banks. 6. Both the sides are in agreement that the facts and circumstances of the instant ground are mutatis mutandis similar to those of the assessment year 2012-13. Following the view taken hereinabove, I order to grant deduction u/s.80P on such interest income. 7. The only other issue which survives in this appeal is against making disallowance of ₹ 2,70,834/- u/s. 40(a)(ia) of the Act. 8. Facts apropos this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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