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TMI Blog2022 (3) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Year (A.Y) 2016- 17. 2. The solitary issue in the present appeal relates to the denial of deduction u/s. 80P on the interest income earned by the assessee from Nationalized Bank. 3. As transpires from the orders of the authorities below, the asessee is a Co.Op. Society providing financing to its members on interest. During the impugned year, the assessee had claimed deduction u/s. 80P of the Act, both on the interest received from Co.Op. Banks and from Nationalized Banks ,which was denied by the Assessing Officer (A.O) following the decision of the Hon'ble Apex Court in the case of Totgars Co-operative Sales Society Ltd. vs. ITO reported in 188 Taxmann. 282. The Ld. CIT(A) in turn upheld the claim of the assessee to deduction u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said extent which according to the ld.counsel for the assessee tantamounted to Rs. 17,92,905/- and only thereafter, the balance remaining after reduction of the said expenses from the interest earned from Nationalized Bank of Rs. 21,19,273/-, be subjected to tax. 5. Ld. D.R. on the other hand relied on the order of the Ld. CIT(A) and drew our attention to the findings of the Ld. CIT(A) at Para 4.2 onwards as under: 4.2 If anybody reads the above decision of the Hon'ble High Court, though quoted by the appellant in its contention that the interest earned on deposits made with Co.Op. banks is entitled for deduction u/s 80P(2)(d) of the Act; the clear mandate is that the interest earned on deposits made with nationalized banks woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions, namely :- (i) in the case of dividends, -[other than dividends referred to in section 115-O,] -[or interest on securities], any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend -[or interest] on behalf of the assesses ; [(ia) in the case of income of the nature referred to in sub-clause (x) of clause (24) of section 2which is chargeable to income-tax under the head "Income from other sources", deductions, so far as may be, in accordance with the provisions of clause (va) of subsection (I) of section 36 ;] (ii) in the case of income of the nature referred to in clauses (ii) and (Hi) of sub-section (2) of section 56, deductions, so far as may be, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h dividend *[or interest] on behalf of the appellant. Since the appellant did not furnish the copies of Profit & Loss Account and the balance-sheet so as to ascertain as to whether it had paid any commission or remuneration to the banker or any other person(may be the employees who are carrying out multiple tasks on behalf of the appellant for carrying out its objects and purposes). Therefore, it is difficult to identify the amount of such commission or remuneration. Further, as per clause (iii) of section 57 of the Act, the appellant would be entitled to get deduction by way of any other expenditure(not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) we agree with his findings that since the interest income from Nationalized Bank is to be subjected to tax as income from other sources u/s./ 56 of the Act, the provisions of Section 57 would govern the allowability of expenses. We have further noted that before the Ld. CIT(A), the assessee had neither furnished copies of Profit and Loss account nor Balance Sheet so as to enable him to arrive at a proper and reasonable basis for determining the extent of expenditure relatable to earning of this income. The said financial statements have been filed before us at paper book page no. 15 to 20 and we have noted from the profit and loss account of the assessee for the impugned year placed before us at paper book page no. 22 that out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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