2019 (4) TMI 682

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.... ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order dated 16-03-2016 passed by the Pr.CIT-2, Nashik u/s.263 of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2011-12. 2. Briefly stated, the facts of the case are that the assessee is a Co-operative Society engaged in providing credit facilities to its membe....

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....o be erroneous and prejudicial to the interest of the Revenue on the ground that interest received from SBI at Rs. 76.93 lakh should have been shown as income chargeable to tax without any reduction of interest paid to members on the money invested in FDs and interest paid on FD-OD account. The assessee is aggrieved by the impugned order. 3. We have heard both the sides and perused the relevant....

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.... the Tribunal discussed the contrary views expressed by the Hon'ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 taxmann 309 (Kar.) allowing the deduction u/s. 80P on interest income and that of the Hon'ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction u/s.80P on interest i....

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.... the similar view, we hold, in principle, that interest income earned on Fixed Deposits kept with Nationalized banks qualifies for deduction u/s.80P of the Act. 4. Adverting to the facts of the instant case, it is seen that the assessee requested the AO to finalize the assessment even by including net interest income of Rs. 2,46,208/- earned from bank FDRs after reduction of OD interest and int....