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TMI Blog2022 (11) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 3 - SUPREME COURT ] is not applicable on the facts of the instant case. Thus the alleged sum is eligible for deduction u/s. 80P(2)(a)(i) of the Act and should not be treated as income from other sources . Therefore, reverse the findings of the ld. CIT(A) and allow all the grounds raised by the assessee for the AY 2017-18. - ITA Nos.584 And 585/Kol/2021 - - - Dated:- 11-11-2022 - Shri Manish Borad, Hon ble Accountant Member For the Appellant : Shri A.K.Ghosh, Advocate,Ld.AR For the Respondent : Shri Vijay Kumar, Ld.Addl.CIT/DR ORDER PER MANISH BORAD, AM. Both the appeals of the assessee for the assessment years 2017-18 2018-19 are directed against the separate orders dt. 07-07-2021 08-07- 2021 passed u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority erred in law and facts, in confirming the action of the learned Assessing Authority in denying the claim of deduction u/s 80P(2)(a)(i) of the Income-tax Act, 1961 amounting to Rs. 91,091/-. 2. For that the Ld. Appellate Authority and the learned Assessing Authority erred in law and on facts in denying deduction u/s 80P of Income-tax Act, 1961 amounting to Rs. 91,091/-. The authorities treated the entire bank interest income under the head of income from other sources. 3. For that the Ld. CIT (A) erred in law and on facts in not allowing the claim of deduction of such interest income and ought to have appreciated that deposits were kept with banks for safety and prudence perspective which is at all-time available for disbur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Counsel for the assessee vehemently argued, filed written submissions and paper book containing 35 pages and contended that the alleged interest income was from saving bank account and is not from any deposits. It was submitted that maintaining of saving bank account is essential to carry out the business activities of the society and the same is necessary for business of the society. Therefore, the interest earned from such saving bank account should be treated as business income eligible for deduction u/s. 80P(2)(a)(i) of the Act. 8. Per contra, the Ld. Departmental Representative vehemently argued supporting the orders of the lower authorities. 9. I have heard the rival contentions and perused the material placed on record before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the alleged sum is earned from saving bank account, which is akin to the business activities carried out by the assessee the alleged interest is not earned from any surplus or idle funds and it is part of the business income and therefore, the judgment of the Hon ble Apex Court in the case of Totgars Co-op Sale Society Ltd supra is not applicable on the facts of the instant case. Thus the alleged sum is eligible for deduction u/s. 80P(2)(a)(i) of the Act and should not be treated as income from other sources . I, therefore, reverse the findings of the ld. CIT(A) and allow all the grounds raised by the assessee in appeal no. ITA No. 584/Kol/2021 for the AY 2017-18. 12. Now, I take up the appeal No. 585/Kol/2022 for the AY 2018-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case are that the assessee for the assessment year 2018-19 assessee filed e return on 16-08-2018 declaring Nil income after claiming deduction u/s. 80P(2)(a)(i) of the Act at Rs. 13,52,434/-. Thereafter, the said return was processed by the Centralized Processing Center, Bangalore u/s.143(1) of the Act on 12-07-2019, wherein claim of deduction u/s. u/s. 80P(2)(a)(i) of the Act was not considered and income of the assessee society was assessed at Rs 13,52,430/-. Thereafter, the assessee filed revised return on 23-08-2019 after correctly uploading the schedule on the portal of income-tax for claiming the deduction u/s. 80P(2)(a)(i) of the Act, but the said revised return was not considered and the rectification petition dt. 03-08-2019 was a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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