AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 1277
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....eals), National Faceless Appeal Centre (NFAC), Delhi, dated 23.12.2022 and pertains to assessment years 2012-13, 2014-15 & 2017-18. Since, facts are identical and issues are common, for the sake of convenience, the appeals filed by the revenue and the cross objections filed by the assessee are being heard together and are being disposed off, by this consolidated order. 2. At the outset, we find that there is a delay of 56 days in appeals filed by the revenue for assessment years 2014-15 & 2017-18, for which necessary petition for condonation of delay along with affidavit explaining the reasons for the delay has been filed. The DR further submitted that the Department could not file appeals within the time allowed under the Act, due to asse....
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....ct on 09.12.2019 where, the Assessing Officer has disallowed deduction claimed u/s. 80P(2)(a)(i) of the Act, on the ground that the assessee did not satisfied the conditions of filing return of income on or before due date prescribed u/s. 139(1) or u/s. 139(4) of the Act. The Assessing Officer had also made additions towards interest earned on fixed deposits with other cooperative banks on the ground that the assessee is not entitled for deduction toward interest income earned from deposits with other cooperative banks. However, since the deduction claimed towards total income has been disallowed, no separate addition has been made towards disallowance of interest income. 6. The assessee challenged the assessment order before the CIT(A) an....
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.... where the Tribunal has considered an identical issue and held that the assessee is entitled for deduction u/s. 80P of the Act, in respect of interest income earned from fixed deposits with other cooperative banks. 9. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. We find that an identical issue has been considered by the Tribunal in appellant's own case for assessment year 2013-14 in ITA No 3047/Chny/2019 dated 10.11.2020, where under identical set of facts, the Tribunal held that the assessee is entitled for deduction u/s. 80P of the Act, towards income derived from its business activities including interest income earned from fixed deposits with other cooperative b....
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....ice issued u/s. 148 of the Act and in the said return of income the assessee has made a claim for deduction u/s. 80P(2)(a)(i) of the Act. Therefore, we are of the considered view there is no merit in the arguments taken by the ld.DR that the assessee is not entitled for deduction u/s. 80P unless such deduction is claimed by filing return of income within the prescribed time allowed u/s. 139(1) or 139(4) of the Act. This view is fortified by the decision of the Hon'ble Kerala High Court in the case of Chirakkal Service Cooperative Bank Ltd., vs. CIT (2016) 384 ITR 490 (Ker), where the Hon'ble Kerala High Court held that "a return filed by the assessee beyond the period stipulated u/s. 139(1) or 139(4) or 142(1) or 148 of the Act can also be ....
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....d interest. In those facts, the Hon'ble Supreme Court came to the conclusion that the assessee is not entitled for deduction towards interest income u/s. 80P(2)(d) of the Act, because such interest is not earned from its business activity. In this case, the assessee is primarily engaged in the business of providing credit facilities to its members and in the course of its business it has parked funds collected from its members in other co-operative banks / nationalized banks as per the statutory requirements of the co-operative societies Act. The assessee has treated interest earned from other co-operative banks as part of its business activity. Once the assessee has earned interest income as part of its business activity and such interest ....