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TMI Blog2022 (5) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... nds of appeal:- "1. In law and in the circumstances of the case the Hon. CIT(A) NFAC has erred in upholding the addition made by the Ld. A.O. and disentitling the assessee of deduction u/s. 80P of the Income-tax Act, 1961. The assessee craves leave to add to amend, alter, delete and /or withdraw any of the above grounds of appeal on or before the final hearing." 3. At the outset, we note that the appeal is time barred by 02 days. The Hon'ble Supreme Court in the case of Collector, Land Acquisition v. Mst. Katiji 1987 taxmann.com 1072, analyzed the provisions of law qua limitation Act and held that the expression 'sufficient cause' employed by the legislature in the Limitation Act is adequately elastic to enable the Courts t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f providing credit facilities to its members and taking deposits from its members. The assessee filed return of income for A.Y. 2017-18 on 21.02.2018 declaring total income of Rs. 1,89,000/- after claiming deduction u/s 80P of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') of Rs. 46,24,283/-. During the course of assessment proceedings, Ld. Assessing Officer observed that the assessee has claimed deduction of Rs.46,24,283/- u/s 80P(2)(a)(i) of the act. Details of the same is as under: Interest from loan to members Rs.31,05,395/- Security interest from members Rs.1,11,853/- FD Interest income from Banaskantha Dist. Co-operative Bank Rs. 12,87,267/- Interest income from Banaskantha Dist. Co-operative Bank saving a/c R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant that it is eligible for deduction u/s 80P is not correct. The addition of the AO is fully justified, keeping in view the facts and circumstances of the case and the interest earned is clearly taxable under the head Income from Other Sources." 6. The issue for consideration before us is whether the assessee is eligible to claim deduction on interest earned from Co-Operative Bank u/s 80P(2)(d) of the Act. The Hon'ble Gujarat High Court in the case of State Bank of India Vs. CIT (2016) 389 ITR 578 (Guj), held that that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. The Honourable Gujarat High Court made fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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