TaxTMI 
TaxTMI 
2014 (4) TMI 21
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....ce the same are dismissed. Ground No.3 was not pressed in the course of hearing, hence Ground No.3 is also dismissed. The remaining surviving grounds namely grounds 4 to 6 are as follows: "4. The CIT (A) failed to appreciate that the interest receipts were earned from deposits with other Cooperative Societies and therefore eligible for deduction us 80P(2)(d) of the Act. 5. Without prejudice, the CIT (A) failed to note the established legal position that the nature and treatment of receipts is not altered by the depiction of the same in the books of accounts or in the return of income and that a legitimate claim cannot be rejected because of a mistake or omission on the part of the assessee which would result in un-lawful enrichment of....
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....that the assessee has failed to satisfactory reply as to why the interest of Rs.1,51,31,155/- was not reflected to P&L account and why deduction u/s 80P(2)(d) should be extended to this additional income not reflected in P&L account, in view of section 80A(5) which reads as "where the assessee fails to make a claim in his return of income for any deduction u/s 10A or section 10AA or section 10B or section 10BA or under any provision of the Chapter under the heading 'C' - Deduction in respect of certain incomes', no deduction shall be allowed to him thereunder". In view of the above the additional interest of Rs.1,51,31,155/- which is not reflected in the P&L Account and on which no deduction u/s 80P(2)(d) is claimed by the as....
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....e Hon'ble Supreme Court in the case of CIT vs. Mahendra Mills 243 ITR 56 held that "department should not take advantage of ignorance of an assessee and every assessee should be made known of his/its tax liability as well as benefits, relief and deduction available under the statute". 5.1 Further, it was submitted that the Assessing Officer could have been allowed the assessee to file a revised computation statement during the course of the assessment as the tax effect is nil and also legally the interest earned from cooperative society amounting to Rs.1,51,31,115/- is exempt u/s 80P(2)(d). Only because of mistake committed by the assessee by not offering such income and claiming deduction u/s 80P(2)(d), the tax cannot be levied. In ....
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....ssee claiming deduction u/s 80P(2). If interest income is offered for taxation and then deduction is not claimed, section 80A(5) would have application. The Assessing Officer had added the interest income which otherwise would have been allowed as a deduction. Therefore, on the principles of equity, the Assessing Officer was duty bound to give the assessee a change to claim deduction u/s 80P(2). 7.1 The Hon'ble Apex Court in the case of CIT vs. Mahindra Mills 243 ITR 56 held that the Department should not take advantage of ignorance of an assessee and every assessee should be made known of his/its tax liability as well as benefits, reliefs and deduction available under the statute. 7.2 The CBDT vide circular dated 11th April, 1955....