Section 80P(2)(d) deduction upheld where Revenue raised a new ground not examined by the Assessing Officer.

Deduction under section 80P(2)(d) was upheld where the Assessing Officer had only considered whether gross or net income should be taken for the claim. The Tribunal accepted the Commissioner (Appeals)' reliance on binding coordinate bench decisions and held that the Revenue could not raise a new objection before it on a ground not examined by the Assessing Officer. The assessee's deduction claim was therefore sustained and the Revenue's challenge rejected.

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Issues: Whether the assessee was entitled to deduction under section 80P(2)(d) of the Income-tax Act, 1961 on the receipts in question, and whether the Revenue could dispute the claim on a ground not examined by the Assessing Officer.

Analysis: The Tribunal noted that the only issue before the Assessing Officer was whether gross income or net income should be considered for deduction under section 80P(2)(d). The Commissioner (Appeals) had allowed the claim by following binding co-ordinate bench decisions. The Tribunal held that the Departmental Representative could not introduce a new contention that had not been considered by the Assessing Officer, and saw no reason to differ from the Commissioner (Appeals), whose view was supported by earlier coordinate bench rulings.

Conclusion: The assessee's claim for deduction under section 80P(2)(d) was upheld and the Revenue's objection was rejected.

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