2021 (12) TMI 456

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....mlesh Makana, Sr.DR ORDER PER RAJPAL YADAV, VICE-PRESIDENT: Assessee is in appeal against order of the ld.CIT(A), Gandhinagar dated 18.9.2019 passed for the Asstt.Year 2011-12. 2. Sole grievance of the assessee in this appeal is that the ld.CIT(A) has erred in confirming order of the ld.AO in disallowing claim of the assessee under section 80P(2)(a)(i) of the Income Tax Act, 1961. 3....

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....ined that the investment so made was part of the activities of the assessee and as per its byelaws. Further, the assessee was of the view that the expenditure relatable to earning of such interest income deserves to be set off against this income, and thereafter net interest income is to be excluded from computation of deduction admissible under section 80P(2). However, the ld.AO did not accept su....

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....the ld.CIT(A) in the impugned order, but submitted that in case claim of the assessee is not found to be admissible, then proportionate administrative and financial expenses incurred for earning such interest/investment income be allowed to the assessee. On the other hand, the ld.DR supported orders of the Revenue authorities below. 6. A perusal of the record would show that the ld.CIT(A) has m....

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.... as well as under section 80P(2)(d) because it is not from cooperative society, in view of the above judgment of Hon'ble Gujarat High Court. However, we find merit in the contention of the assessee that expenditure should be allowed in respect of interest income earned from the investments. If the component of income does not qualify for grant of deduction under section 80P(2)(a)(i), then such inc....