2022 (8) TMI 1070

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....t order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 06.09.2017. 2. Grounds of appeal raised by the Revenue are as follows: "1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance amounting to Rs.2,21,93,840/- whereas the AO in his assessment order elaborately discussed and rightly treated it not to be eligible for deduction u/s 80P(2)(d) of the Act. 2. Whether on the facts and in the circumstances of the case and in Law, the Ld. CIT(A), Surat ought to have upheld the order of the Assessing Officer. It is, therefore, prayed that the order of the Ld. CIT(A)-1, Surat may be set-aside and that of th....

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....80P(2)(d) of the Income Tax Act and hence disallowed the same. 4. Aggrieved by the order of Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A), who has deleted the addition made by the Assessing Officer observing as follows: "8. Discussion & Decision of the Appellate Authority 8.1 It is seen that Id. AO has disallowed deduction claimed u/s 80P(2)(a) claimed on interest & dividend received from other than co-operative Societies and also from Nationalised Banks as under: Sr. No. Name of the assessee Deduction u/s 80P(2)(a)(i) disallowed by Ld. AO 1 Vidyabharti Co.-operative Credit Society Limited, AY 2014-15 Interest from Nationalised Bank of Rs. 68,07,972/- 2 Vidyabharti Co.-operative Credit ....

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....-operative Bank. The said i interest is not claimed u/s 80P(2)(d) of the Income Tax Act, 1961. The appellant had derived interest income of Rs.1,00,61,630/- and out of this interest income Rs.49,91,383/- was other than the investment in co-operative society. The AO held that the appellant business was under the category of 80P(2)(a) and therefore he is eligible for deduction u/s 80P(2)(d) of the Act of the interest income earned by the society from Cooperative society. The AO relying on the judgment in the case of Totgars Cooperative Sale Soc. Ltd. (supra) disallowed the interest income of Rs.49,91,383/-. The appellant submitted as per section 80P(2)(a)(i) in the case of a Co-operative society engaged in carrying on the business of Banking ....

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....ant. Hence the addition made by the AO of disallowance of Rs.70,02,825/- deleted and the ground of appeal is allowed." 8.3 It can be seen that ld. CIT(A) has been guided by the binding decision of jurisdictional ITAT Ahmedabad. Since the facts are identical and reasons given by Ld. AO for the impugned disallowance are identical, the above decision applies mutatis mutandis to instant appeal. Respectfully following the same in interest of consistency & uniformity, the impugned disallowance are directed to be deleted in both the assessment years." 5.Aggrieved by the order of ld CIT(A), the Revenue is in appeal before us. 6. We have given our thoughtful consideration to rival contention. Case file as well as paper books are carefully peruse....