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TMI Blog2024 (7) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... of funds are irrelevant. Therefore the contention of the Assessee is not tenable we agree completely with the view of the ld. CIT(A) that the deduction for Interest on investment can t be granted u/s 80P(2)(a)(i) of the Income Tax Act. Claim of deduction u/s 80P(2)(d) - We direct the A.O. to verify whether interest / dividend is received by the assessee out of investments made with Cooperative Societies. If the assessee earns interest / dividend income out of investments with co-operative society, as observedin the case of Kerala State Cooperative Agricultural and Rural Development Bank Ltd. [ 2023 (9) TMI 761 - SUPREME COURT ] the same is entitled to deduction u/s 80P(2)(d) of the I.T. Act. Treatment of interest income from banks as Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed In confirming the addition made by A.O by disallowing deduction u/s 80P relating to interest income of Rs. 2,90,477/- from scheduled bank, interest income on saving deposits of Rs. 2,05,219/- deductible u/s 80Р(2)(a)(i) on the ground of attributable to. Without prejudice such Interest income is not taxable on gross basis and only net income after deducting expenses is taxable. 6. The Appellant craves leave to add, alter, amend or modify any of the grounds of appeal. 3. The brief facts of the case are that the appellant is a Co-operative credit Society, registered under the Karnataka Souharda Sahakari Act, 1997 and engaged in the business of providing credit facilities to its members. The appellant had e-filed its return of income f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Co-operative Sales Society 83 taxmann.com 140 (Kar.) (2021). 6. Aggrieved by the order of the Ld.CIT(A), assessee is in appeal before this Tribunal . 7. Before us the Ld.AR of the Assessee submitted that the Authorities below erred in not allowing deduction amounting to Rs. 29,03,116 claimed u/s 80P(2)(a)(i) of the Act on the ground that the said Interest was not eligible for deduction u/s 80P(2)(a)(i) and the same was taxed by AO u/s 56 as Income from other sources . The CIT(A) confirmed the addition made by the A.O. Without prejudice to this, it was submitted by the ld AR of the Assessee that the assessee is entitled for cost of funds incurred u/s 57 of the Act if the income is assessed as income from other sources u/s 56 of the Act. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arnataka) wherein it is held that the source of funds are irrelevant. Therefore the contention of the Assessee is not tenable we agree completely with the view of the ld. CIT(A) that the deduction for Interest on investment can t be granted u/s 80P(2)(a)(i) of the Income Tax Act. 10.2 Further with regards to the allowable of the claim of deduction u/s 80P(2)(d) of the I.T. Act, we direct the A.O. to verify whether interest / dividend is received by the assessee out of investments made with Cooperative Societies. If the assessee earns interest / dividend income out of investments with co-operative society, as observed by Hon ble Supreme Court in the case of Kerala State Cooperative Agricultural and Rural Development Bank Ltd. in Civil Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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