2022 (11) TMI 421

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....of appeal: "1. In the facts and circumstances of the case and in law, the learned C.I.T.[A] has grossly erred in denying deduction u/s 80P[2][a][i] of the I.T. Act 1961 to the appellant in respect of interest income of Rs.1,08,53,328/- earned from fixed deposits kept by it with nationalized banks and has further erred in taxing the said income u/s 56 of the I. T. Act, 1961. The aforesaid addition being patently illegal, bad in law, arbitrary, perverse and devoid of merits the same may please be deleted and it may please be held that the aforesaid interest income is exempt u/s 80P[2]a[][i] of the I. T. Act, 1961. 2. In the facts and circumstances of the case and in law, the learned C.I.T.[A] has grossly erred in denying ded....

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.... of the members and to provide credit facilities to its members as per by-laws of the society. 3. In the assessment order, at para 6.4 the Assessing Officer(AO) has mentioned as under : "6.4 Further, the details of interest income on investment made with Nationalilzed Banks are as under : Sr.No. Particulars Amount(Rs.) 1 Interest on investment/FDRs with Bank of India 1,08,53,328/- 4. The AO denied assessee's claim for deduction under section 80P(2)(a)(i) for the said income of Rs.1,08,53,328/- stating that it is not its business activity. The same is in the nature of Income from Other Sources and it is required to be taxed under section 56 of the Act. The AO also held that the deposits have been made out of ....

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....rom State Bank of India which was denied by the Assessing Officer." Thereafter, the Tribunal has held as follows: "4.We have heard both the sides and perused the relevant material on record. It is observed that the ld. CIT(A) allowed the claim of deduction u/s.80P by following the order passed by the Tribunal in the case of Shivneri Nagari Sahakari Patsanstha Ltd. (supra). The ld. AR placed on record a copy of the another order of the Pune Bench dated 19-08-2015 in the case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) (to which one of us, namely, the ld. JM is party) in which similar deduction has been allowed. The Pune Bench of the Tribunal in the case of Shri Laxmi Narayan Nagar....