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TMI Blog2023 (11) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... - HELD THAT:- As per the decision of Hon ble Gujarat High Court in case of Sabarkanta District Co-op. Milk Producers Union Ltd. [ 2014 (6) TMI 977 - GUJARAT HIGH COURT] the credit society is allowed deduction u/s 80P(2)(d) of the Act, if the interest on FD is earned from District Cooperative Bank. Therefore, in the present assessee s case the same should have been considered by the CIT(A). Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case and in law the learned CIT (A) ought to have allowed the appeal and ought to have deleted the disallowance of Rs. 4,12,210/- 3. It is therefore prayed that the appeal may be allowed and the disallowance of Rs. 4,12,210/- upheld by the CIT(A)-11, Ahmedabad, may be deleted. 3. The assessee Co-operative Mandali is engaged in providing the banking credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d interest received on FD with Banks of Rs. 4,12,210/- . 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT (A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the Assessing Officer has no clarity about the provisions of Section 80P of the Act, as would be seen from the observations related to the judgment of the Hon ble Gujarat High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he interest income earned by the assessee is incidental to its business of providing credit facilities to members of the Society and forms part of the profit of Rs. 10,41,989/-, the whole of which amount is admissible for deduction u/s. 80P(2)(a)(i) of the Act. Though the interest received from Dena Bank is not allowable yet the interest earned from S.K. Dist. Co-op Bank has to be allowed in light ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society is allowed deduction under Section 80P(2)(d) of the Act, if the interest on FD is earned from District Cooperative Bank. Therefore, in the present assessee s case the same should have been considered by the CIT(A). Thus, it is directed to the Assessing Officer to allow the assessee benefit of deduction under Section 80P(2)(d) of the Act in respect of interest earned on FD from S.K. Distri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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