2018 (6) TMI 1576

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....e Act‟). In the return of income filed by the assessee, assessee claimed deduction in respect of certain receipts, i.e. Electricity Commission, Bank Interest, Interest on MSEB deposit, Advertisement Income, etc. The assessee filed return of income declaring total income of Rs. 3,77,670/-. At the end of assessment proceedings, the Assessing Officer computed assessed income at Rs. 16,25,503/-. In the process, the Assessing Officer denied claim of deduction under section 80P of the Act in respect of above referred receipts. 3. During first appellate proceedings, the assessee made elaborate submissions and relied on various decisions in support of claim of deduction under section 80P of the Act in respect of above mentioned receipts. H....

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....lowed in favour of assessee. 6. Referring to the decision of Tribunal in the case of Banganga Nagri Sahakari Patsanstha Ltd. Vs. ITO in ITA Nos.1521 & 1522/PN/2015, order dated 10.03.2016, the learned Counsel for assessee submitted that the issue of allowing of Electricity Commission is covered in favour of assessee. 7. Regarding the issue of Bank Interest, the learned Counsel for assessee relied on CBDT‟s Circular No.18/2015, dated 02.11.2015. 8. Regarding MSEB Deposit Interest and Advertisement Income, the learned Counsel for assessee demonstrated that the principle of parity may be followed as the said income is also entitled for deduction under section 80P of the Act. 9. The learned Departmental Representative for the ....

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....eligible for deduction under section 80P of the Act in respect of this income. With respect to the income from running of Ambulance, while holding that the assessee is not eligible for deduction under section 80P(2)(a) or (b), we are in total agreement with the alternate plea of the assessee that the expenses attributable for the purpose operating such activity ought to have to be allowed on actual/proportionate basis. We are of the view that the action of the CIT(A) in restricting the expenses artificially @ 10% of the gross income from such activities is not sustainable in law being devoid of objectivity. The Assessing Officer is accordingly directed to allow the expenses which are attributable to the running of Ambulance and determine th....