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TMI Blog2024 (4) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... separate assessment/rectification orders passed by Assessing Officer u/s 154 and 143(3)of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 2. First, we shall take assessee`s appeal in ITA No.115/SRT/2024 for assessment year 2017-18. The grounds of appeal raised by the assessee in ITA No.115/SRT/2024, are as follows: "(1) The learned CIT(A) was not justified in denying relief u/s 80P(2)(d), particularly when there was a binding precedent emerging from the facts. (2) Alternatively, the CIT(A) ought to have granted relief u/s 80P(2)(a)(i) of the Act. (3) The learned CIT(A) grossly erred by narrating the entire facts of AY. 2018-19, in the appeal he was dealing for the AY.2017-18. (4) All of the above grounds are preju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulted in delay, hence such delay should be condoned in the interest of justice. 5. On the other hand, learned Senior Departmental Representative (ld. Sr. DR) for the Revenue submitted that delay should not be condoned because the assessee has not explained the sufficient cause, and reason for the delay. Moreover, the assessee has not filed the appeal against the order passed by the ld CIT(A) under section 154 of the Act, for which the alternative remedy is being sought by the assessee, therefore, delay should not be condoned and the appeal of the assessee may be dismissed. 6. We have heard both the parties on this preliminary issue. We note that the assessee was seeking alternative remedy during the appellate proceedings before ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We note that issue under consideration is no longer res judicata and the interest received from Co-operative Bank is allowable deduction under section 80P(2)(d) of the Act, for that reliance is placed on the decision of the Hon`ble Jurisdictional High Court of Gujarat in the case of Surat VankarSahakari Sangh Ltd, [2016] 72 taxmann.com 169 (Gujarat)/[2020] 421 ITR 134 (Guj), wherein it was held that assessee-co-operative society was eligible for deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act with reference to such outgoings which fall under different heads. The assessee is entitled to deduction under Section 37 of all expenditure incurred for the purpose of deriving the business income, and it is under that head that the interest paid on the loan taken from the bank is deducted. The net amount of interest contemplated by Section 80AB should take in the net amount arrived at after meeting the expenses deductible from that item under the provisions of the Act as explained above. That is not the case here. Therefore, Section 80AB has no application to the facts of these cases. The interest paid on the loan transactions has to be deducted from the business income, and not from the interest received from the bank on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lassic words of Rowlatt J., in Cape Brandy Syndicate v. IRC [1921] 1 KB 64, 71: "...In a taxing Act, one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used," 7. The principle laid down by Rowlatt J., has also been time and again approved and applied by the Supreme Court in different cases including the one, Hansraj Gordhandas v. H. H. Dave, Assistant Collector of Central Excise and Customs, AIR 1970 SC 755, 759. 8. Section 80P(2)(d) of the Act allows whole deduction of an income by way of interest or dividends derived by the co-operative soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the income which she earned from the fixed deposit and that she was not entitled to the deduction claimed under Section 12(2). The High Court held that if an assessee had no option except to incur an expenditure in order to make the earning of an income possible, then undoubtedly the exercise of that option is compulsory and any expenditure incurred by reason of the exercise of that option would come within the ambit of section 12(2) of the Indian Income-Tax Act but where the option has no connection with the carrying on of the business or the earning of the income and the option depends upon personal considerations or upon motives of the assessee, that expenditure cannot possibly come within the ambit of Section 12(2). In the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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