TaxTMI 
TaxTMI 
2022 (9) TMI 720
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.... "the Act". 2. The assessee has taken the following grounds of appeal:- "1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. The order passed by Pr. Commissioner of Income-tax, Rajkot-1 [hereinafter referred as to the "PCIT"] is bad in law, invalid and requires to be quashed, the same may kindly be quashed. 3. The Ld. PCIT erred in law and on facts in arriving at a conclusion that the assessment order passed by the AO was erroneous as well as prejudicial to the interest of the revenue as the same was passed without verifying allowability of deduction u/s. 80P(2)(d) of the Income-tax Act, 1961 [hereinafter referred as to the "Act"] in respect of interest on FDRs held with other ....
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....3 proceedings, the assessee submitted that it had not received any interest income from the cooperative bank except the dividend income of Rs. 2,66,250/- on investment from shares in Rajkot District Cooperative Bank Ltd. on which deduction has been claimed under section 80P of the Act. Further, the assessee submitted that the interest income has been received only from members and not from any cooperative bank and therefore there was no error in passing of the order by the AO u/s 143(3) of the Act. 5. The Principal CIT however held that whether the interest income has been received from co-operative bank or only from its members is a subject matter of verification. He further held that the assessee is also not eligible for deduction unde....
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....t of total loan/advances given to them and closing balance as on 31.03.2017. b) PAN, Address and mobile number of such members. 3. Please provide copy of Computation of Total Income and Tax Audit Report for A.Y. 2017-18. 4. From the perusal of the ROI it is gathered that the assessee has total loans & advances of Rs. 8,76,24,597/- and long term investments of Rs. 17,75,000/- in unlisted equities. However against such huge loan & advances and bank balances assessee has shown very less total income (Including Exempt Income ) in the ITR. In this regard you are hereby requested to give details of all the income arising from the investments, Loans & Advances etc. along with an explanation for the lower ration of income....
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....d with a co-operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. The Honourable Gujarat High Court made following observations in respect of interest earned from deposits kept with a cooperative bank: Therefore, it is only the interest derived from the credit provided to its members which is deductible under section 80P(2)(a)(i) of the Act and the interest derived by depositing surplus funds with the State Bank of India not being attributable to the business carried on by the appellant, cannot be deducted under section 80P(2)(a) (i) of the Act. If the appellant wants to avail of the benefit of deduction of such interest income, it is always open for it to deposit the surplus funds with a co-operat....