2018 (5) TMI 1729

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....assessment order passed under s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 11/03/2015 & 26/10/2015 relevant to Assessment Years (AYs) 2012-13 & 2013-14 respectively. 2. Since common issues have been raised by the assessee in its both the appeals, therefore, we decided to club both of them for the purpose of hearing and adjudication for the sake of brevity. 3. First we take up ITA No09Ahd2017 for AsstYear 201213 The assessee has raised following Grounds of appeal: "1. L'nd A.O. erred in law and on facts in disallowing deduction claimed u/s. 80P(2)(a)(i). 2. L'nd A.O. erred in law and on facts in disallowing deduction interest earned on Bank FDRs by the appellant society amo....

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....ct the adjournment petition filed by the assessee and decide the issue on merit. After hearing the Ld. DR, we decided to reject the adjournment petition and proceeded to hear the appeal filed by the assessee. The interconnected issue raised by the assessee in its all grounds of appeal is that Ld. CIT(A) erred in confirming the order of AO by disallowing the deduction u/s 80P(2)(a)(i) of the Act for Rs. 40,52,234/- only. 5. Briefly stated facts are that the assessee in the present case is a Cooperative Credit Society and engaged in providing credit facilities to its members. The assessee during the year has earned interest income and other income as detailed under: Sr. No. Head of Income Amount 1. Interest on the adva....

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....ed the materials available on record. The assessee in its income tax return has shown following gross income: Sr. No. Head of Income Amount 1. Interest on the advance given to members 27,00,654 2. Interest income on the deposits in the banks 40,17,802 3. Interest income on the deposits with Cooperative Banks 285 4. Other income 34,147 8. The interest income earned by the assessee from its members on account of advance given to them for Rs. 27,00,654/- is allowable for deduction u/s 80P(2)(a)(i) of the Act. The facts of the case are not in dispute, therefore we are not inclined to repeat the same for the sake of brevity. 9. The interest income earned by the assessee from the short term de....

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....pect of such income u/s 80P(2)(a)(i) of the Act. 12. The assessee in its grounds of appeal has also claimed the deduction of Rs. 50,000/- u/s 80P(2)(c) of the Act. In this regard, we direct the AO to allow the deduction in accordance to the provisions specified u/s 80P(2)(c) of the Act. 13. In view of above, we direct the AO to adjudicate the issue afresh in accordance with the provisions of law and in the light of the above stated discussion hence, ground of appeal of the assessee is allowed for statistical purposes. 14. Now coming to ITA No.10/Ahd/2017 for Asst. Year 2013-14. The assessee has raised following grounds of appeal: "1. L'nd A.O. erred in law and on facts in disallowing deduction claimed u/s. 80P(2)(a)(i)....