Tribunal grants deduction under section 80P for interest income from Bank of Baroda deposits

The Tribunal allowed the appeal, granting deduction under section 80P for interest income earned from deposits with Bank of Baroda, following precedent where deductions were allowed for similar cases involving nationalized banks.

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Issues involved: Denial of deduction u/s.80P in respect of interest income earned from deposits kept with a Nationalised bank.

Summary:
The appeal was filed against the order of the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961, for the assessment year 2014-15. The only issue raised was the denial of deduction u/s.80P for interest income earned from deposits with a Nationalised bank.

The appellant, a Cooperative credit society, claimed deduction u/s.80P(2) for interest income from deposits with Bank of Baroda. The Assessing Officer disallowed the deduction, which was upheld in the first appeal. The appellant approached the Tribunal challenging this decision.

After considering the submissions and reviewing the relevant material, it was noted that the Tribunal had previously ruled in favor of granting deduction u/s.80P(2)(a)(i) for interest income from nationalised banks in similar cases, including the appellant's case for the preceding assessment year. Referring to a previous order, it was observed that deduction u/s.80P was granted for interest received from Bank of Baroda in the form of Fixed deposit. This decision had not been altered or overturned. Therefore, following the precedent, the Tribunal ordered to allow the deduction u/s.80P for the interest income earned from Bank of Baroda.

As a result, the appeal was allowed, and the order was pronounced in the Open Court on 07th June, 2023.

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