Appeal allowed: Covid delay condoned, deduction granted for interest income. The delay in filing the appeal due to the Covid-19 pandemic was condoned, and the appeal was admitted for disposal on merits. The denial of deduction ...
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Appeal allowed: Covid delay condoned, deduction granted for interest income.
The delay in filing the appeal due to the Covid-19 pandemic was condoned, and the appeal was admitted for disposal on merits. The denial of deduction u/s.80P for interest income earned from term deposits was challenged, with the Tribunal overturning the previous decision and allowing the deduction. The Tribunal favored the view supporting the assessee's claim, citing conflicting views of different High Courts on the matter. Ultimately, the appeal was allowed, and the order was pronounced on 18th October 2022.
Issues: 1. Condoning the delay in filing the appeal due to the Covid-19 pandemic. 2. Denial of deduction u/s.80P for interest income earned from term deposits. 3. Interpretation of the availability of deduction u/s.80P on interest income.
Analysis: 1. The appeal was delayed by 41 days, but the delay was attributed to the Covid-19 pandemic. The Tribunal referred to judgments by the Hon'ble Supreme Court regarding the extension of limitation due to the pandemic. Citing these judgments, the delay was condoned, and the appeal was admitted for disposal on merits.
2. The assessee contested the denial of deduction u/s.80P for interest income of Rs.6,13,359 earned from term deposits with banks. The Assessing Officer disallowed the interest income based on a Supreme Court judgment and the decision was upheld at the first appellate authority level. The assessee then approached the Tribunal to challenge this denial.
3. The Tribunal considered the issue of deduction u/s.80P on interest income, noting that it had been addressed in previous orders by the Pune Tribunal. Referring to specific cases, the Tribunal highlighted conflicting views of different High Courts on the matter. In the absence of a direct judgment from the jurisdictional High Court, the Tribunal favored the view supporting the assessee's claim, overturning the previous order and allowing the deduction. The appeal was ultimately allowed, and the order was pronounced on 18th October 2022.
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