9911796707
TMI Blog2024 (7) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... ome should be considered for calculating the amount of interest income from nationalized bank/cooperative banks. As such the net interest income should only be disallowed and not gross interest income while calculating the eligible amount of deduction u/s 80P(2)(d) of the Act. Therefore, in the interest of justice and fair play, we are setting aside the issue to the file of the AO to calculate the cost incurred by the assessee against the impugned income after giving opportunity to the assessee. Interest earned by the assessee from the co-operative society is eligible for deduction u/s 80P(2)(d) of the Act. While calculating the interest from the co-operative society, the principles laid down in the case of Kerala State Co-operative Agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. At the time of hearing, the ld. AR also submitted that the AO has passed the order giving effect to the direction of the CIT(A) ex-parte to the assessee. As such, the assessee was not offered opportunity of furnishing the details for the cost incurred by it against the income from other sources. In view of the above, the ld. AR contended that as such, the assessee has not aggrieved by the order of the ld. CIT(A) passed u/s 250 of the Act but since the consequential order has been passed by the AO without affording an opportunity to the assessee, the present appeal was preferred to the ITAT with the delay of 52 days. Accordingly, the ld. AR prayed to condone the delay in filing the appeal and decide the issue on merit of the case. 5. On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Society 395 ITR 611 (Kar.). However, proportionate costs, administrative expenses incurred in respect of deposits are allowable as deduction u/s 57 as per decision of the Hon'ble jurisdictional High Court in the case of Totagars Co-operative Sale Society Ltd. v. ITO reported in [2015] 58 Taxmann.com 35 (Karnataka) (judgment dated 25.03.2015). Accordingly, the A.O. is directed to examine whether assessee has incurred any expenditure for earning interest income, which is to be assessed under the head 'income from other sources'. If so, the same shall be allowed as deduction u/s 57 of the I.T. Act and net interest income will not be considered for calculating amount eligible for deduction u/s 80P(2)(a)(i). Ground No. 4 is partly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s interest income while calculating the eligible amount of deduction u/s 80P(2)(d) of the Act. Therefore, in the interest of justice and fair play, we are setting aside the issue to the file of the AO to calculate the cost incurred by the assessee against the impugned income after giving opportunity to the assessee. 11.1 It is not out of place to mention that the interest earned by the assessee from the co-operative society is eligible for deduction u/s 80P(2)(d) of the Act. While calculating the interest from the co-operative society, the principles laid down by the Hon ble Supreme Court in the case of Kerala State Co-operative Agricultural and Rural Bank Ltd., Vs. ACIT reported in 154 taxmann.com 305, should also be considered by the AO. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
