TaxTMI 
TaxTMI 
2023 (5) TMI 631
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....0P of the I.T. Act, 1961 without considering the fact that the appellant is a credit cooperative society and cannot be denied of the benefits of deduction under Section 80P of the I.T. Act, 1961. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in not allowing the claim of proportionate expenditure on the ground that the appellant has not established that any expenditure incurred by it has any proximate connection with earning of interest income or expended even though claim of appellant was supported by decision of Hon'ble Ahmedabad ITAT allowing similar claim of expenditure under Section 57(iii) of the I.T. Act, 1961" 3. The assessee is a Co-operative Credit Society and engaged in the business of providing cre....
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....the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. As regards ground no.1, the Ld. AR submitted that the CIT(A) as well as the Assessing Officer erred in making disallowance of Rs.23,54,135/- being deduction claimed by the assessee under Section 80P of the Act without considering the fact that the assessee is a Credit Co-operative Society and cannot be denied of the benefit of deduction under Section 80P of the IT Act. The Ld. AR further submitted that the assessee Credit Society has derived interest on the reserve fund and the same should have been allowed in the light of the decision of Hon'ble Supreme Court in the case of CIT vs. Karnataka State Co-operative Apex Bank [(2001) SUPP(2) SC....
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....ordance with and sub-section to the provisions of Section i.e. Section 80P, the same is specified in sub-section 2 in computing the total income of the assessee, therefore, whether the Tribunal was right in law in holding that the interest income arising from the investments made out of reserve fund is exempt under Section 80P(2)(a)(i) of the Act. The component of reserve fund has not been verified by the Assessing Officer as well as by the CIT(A). Therefore, it will be appropriate to remand back this issue to the file of the Assessing Officer to verify the same and if the same is coming under the threshold of Section 67 of the Gujarat Co-operative Societies Act, 1961 related to reserve fund and the interest derived from State bank of India....