2019 (5) TMI 1052

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....iled its return for Assessment Year 2014-15 on 26.09.2014 declaring NIL income, after claiming deduction of Rs. 39,22,577/- under section 80P(2)(a)(i) of the Income Tax Act, 1961 (in short 'the Act') on account of interest earned on deposits with Banks. The case was taken up for scrutiny and the order of assessment was concluded under section 143(3) of the Act vide order dated 26.12.2016, wherein the assessee's income was determined at Rs. 39,22,577/-; in view of the AO disallowing the assessee's claim for deduction under section 80P(2)(a)(i) of the Act. On appeal, the assessee was allowed partial relief by the CIT(A), Davangere, vide the impugned order dated 22.11.2018. 3.1 Aggrieved by the order of CIT(A), Davangere dated 22.11.2018 fo....

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....he appeal may be allowed. 3.2 The learned AR was heard in support of the grounds raised in respect of the assessee's claim for being allowed deduction under section 80P(2)(a)(i) of the Act in respect of interest income earned on deposits with banks. The learned AR submitted that the above issue for consideration in this appeal is covered by the decision of the ITAT-Bangalore Bench in the assessee's own case for Assessment Year 2009-10 and 2012-13, wherein vide order in ITA Nos. 2793 and 2794/Bang/2018 dated 25.01.2019, the Tribunal set aside the matter to the file of the Assessing Officer (AO) for de novo adjudication after examining the facts of the case in the light of the judgments of the Hon'ble Apex Court in the case of the Totagars....

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....f the case before the Hon'ble Karnataka High Court in the decision cited by the learned DR was that the Hon'ble Court was considering a case relating to Assessment Years 2007-2008 to 2011- 2012. In case decided by the Hon'ble Supreme Court in the case of the very same Assessee, the Assessment years involved was AY 1991-92 to 19992000. The nature of interest income for all the AYs was identical. The bone of contention of the Assessee in AY 2007-08 to 2011-12 was that the deduction under Section 80P(2) of the Act is claimed by the respondent-assessee under Section 80P(2)(d) of the Act and not under Section 80P(2)(a) of the Act which was the claim in AY 1991-92 to 1999-2000. The reason given by the Assessee was that in AY 2007-08 t....

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.... light of these judgments of the Hon'ble Apex Court rendered in the case of The Totgars Co-operative Sale Society Ltd. (supra) and of Hon'ble Karnataka high Court rendered in the case of Tumkur Merchants Souharda Co-operative Ltd. (supra). The AO will afford opportunity of being heard to the Assessee to file appropriate evidence, if desired by the Assessee, to substantiate its case, before deciding the issue. 8. In the result, appeals by the assessee are treated as allowed for statistical purposes." 3.4.2 Following the decision of this Tribunal in the assessee's own case for Assessment Years 2009-10 and 2012-13, in ITA Nos.2793 and 2794/Bang/2018 dated 25.01.2019, the assessee's claim for deduction under section 80P(2)(a....