TaxTMI 
TaxTMI 
2023 (4) TMI 1000
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....d 18.01.2022, 08.02.2022 & 01.03.2022 arising in the matter of assessment order passed under s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") relevant to the Assessment Year (A.Y.) 2017-18. 2. The only interconnected issue raised by the assessee is that the learned Principal CIT under section 263 of the Act erred in holding the assessment framed under section 143(3) of the Act as erroneous insofar prejudicial to the interest of Revenue. 3. The assessee in the year under consideration, besides the other interest Income has claimed a deduction under section 80P of the Act amounting to B 6,88,664/- and 62,00,674/- on the FDs made with Raj Co-operative Bank Ltd. and Rajkot Nagrik Sahakari Bank respectively. As per t....
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....th the parties and perused the materials available on record. From the preceding discussion, we note that the different Hon'ble High Courts have taken different view with respect to the deduction of the interest income earned by the assessee from the co-operative bank. Some of the judgements are in favour of the assessee and some of them are against the assessee. It is also an admitted fact that the Hon'ble High Court of Gujarat is in favour of the assessee with respect to the interest on deposits made with the co-operative bank. The relevant extract of the judgement of Hon'ble Gujarat High Court in case of in case of CIT vs. Sabarkantha District Cooperative Milk Producers Union Ltd. in Tax Appeal No. 473 of 2014 reads as under: "Consider....
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.... not shown how the method followed by the assessee to divide the expenses for the purpose of claiming relief under section 80HH was improper or unacceptable. The Assessing Officer as well as the Tribunal had found that the expenses were apportioned on a rational basis and it would not be open for the Court to go beyond that finding which appeared to have been reached on the basis of the material on record which showed that in the earlier years the same proportion for dividing the expenses was consistently followed. The department had not been able to show that for those earlier two years any objection was raised against such apportionment. [Para 7] In view of the above detailed discussion and judicial precedent, we find no error in the or....
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....Mandali Ltd. bearing ITA No. 143/Rjt/2022 for the Assessment Year 2017-18. Therefore, the findings given in ITA No. 143/Rjt/2022 shall also be applicable for the issue raised by the assessee in the above-mentioned appeal. The appeal of the Assessee bearing ITA No. 143/Rjt/2022 for A.Y. 2017-18 has been decided by us vide paragraph No. 7 to of this order in favour of the assessee. The learned AR and DR also agreed that whatever will be the findings for the ITA No.143/Rjt/2022 shall also be applied to the appeal on hand i.e.ITA No. 138/Rjt/2022 for the assessment year 2017-18. Hence, the ground of appeal filed by the assessee is hereby allowed. 8.2 In the result, the appeal filed by the assessee is allowed 9. Now coming to the other appeal ....