Deduction under section 80P(2)(d) on interest income required verification of source and character before entitlement could be decided.

Deduction under section 80P(2)(d) on interest income depended on verification of the source and character of the receipts, because the record did not contain complete particulars of the banks or the nature of the income. The Tribunal required the Assessing Officer to examine whether the interest arose from co-operative societies or co-operative banks and to verify whether it had been returned as business income or income from other sources. The matter was restored for fresh verification and decision in accordance with law, with the appeal disposed of for statistical purposes.

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Issues: Whether the assessee was entitled to deduction under section 80P(2)(d) on interest income and whether the matter required verification of the source and character of such income.

Analysis: The assessee claimed deduction on interest earned from fixed deposits and other investments, but the record before the Assessing Officer did not contain complete particulars of the banks and the nature of the income. The appellate record also contained a break-up of interest from co-operative and non-co-operative banks, which required verification in the context of the rules governing additional evidence. The Tribunal found it necessary to ascertain the quantum of interest earned from co-operative societies or co-operative banks and to verify whether the income had been returned as business income or income from other sources before deciding entitlement to the deduction.

Conclusion: The issue was restored to the Assessing Officer for fresh verification and decision in accordance with law; the assessee's appeal was therefore disposed of for statistical purposes.

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