2022 (12) TMI 1013

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....1 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2013-14. 2. The registry has noted that there is a delay of 513 days in filing the appeal by the assessee. This appeal is filed by the assessee on 16.12.2021 which was little after the Covid-19 period wherein Hon'ble Supreme Court in M.A. No. 665 of 2021 in SMW(C) No. 3 of 2020 dated 23.09.2021 passed the following orders: "........ 8. Therefore, we dispose of the MA No.665 of 2021 with the following directions: - I. In computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 02.10.2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03....

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....s stated above that the assessee deposited the amount in nationalized bank not in Cooperative bank. So far interest income is not eligible for deduction u/s.80P of the I.T, Act, Therefore, we are not inclined to given any relief to the assessee with regard to Ground No. 1. 6. So far Ground No. 2 is concerned, Assessee incurred some expenses on the deposit for making FD and also incurred expenses with regard to interest etc. For this learned AR cited a judgment [2015] 58 taxmann.com 35 (Karnataka) in the matter of Totgars Co-operative Sale Society Ltd. vs. Income Tax Officer, in this case Hon'ble High Court held as under: "Section 57, read with section 56 and section 80P(1) of the Income-tax Act, 1961 - Income from othe....

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....nds and thereafter, Assessing Officer will pass an appropriate order. Therefore, we partly allow this appeal. 4. Respectfully following the above Co-ordinate Bench decision, the first ground of appeal, interest income received of Rs. 32,38,779/- from Nationalized Bank is not eligible for deduction u/s. 80P of the Act. Further the Hon'ble Gujarat High Court in the Case of State Bank of India Vs CIT [2016]72 taxmann.com 64 wherein it was held that interest derived by depositing surplus funds with bank not being attributable to business carried on by society, cannot be deducted under section 80P(2(a)(i) of the Act. Hence, ground no. 1 is dismissed. 4.1. Regarding the second ground namely proportionate amount of interest expenses followin....