TaxTMI 
TaxTMI 
2024 (2) TMI 242
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....firming the disallowance of deduction u/s 80P of the Act on the same of Rs.6,49,886/-, after allowing only proportionate expenses. 2. That on facts, and in law, the learned NFAC has grievously erred in confirming the action of AO in treating the rental income of Rs.3,94,590/- as income from other sources and in confirming the disallowance of deduction u/s 80P of the Act on the same, whereas, the appellant has offered this income to tax and has never claimed such deduction on this income. 3. That on facts, and in law, the learned NFAC has grievously erred in confirming the action of AO in treating the income from sale of Crackers of Rs.78,02,133/- as income from other sources and in confirming the disallowance of deduction u/s 80P of the Act on the same of Rs.75,68,160/-, after allowing only proportionate expenses, whereas, the appellant has offered this income to tax and has never claimed such deduction on this income. 4. That on facts, and in law, it ought to have been held that out of the eligible deduction u/s 80P(2)(a)(iii), 80P(2)(a)(iv), 80P(2)(d) and 80P(2)(c)(i) totaling to Rs.22,35,169/-, the appellant has claimed deduction to the extent of gross....
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....ncome "in accordance with the provisions" of the Act. The said amount has to be paid irrespective of whether any interest income is otherwise received or not. Though the interest is payable to the same bank, the fact remains that the amount of income by-way of interest is not calculated under the provisions of the Act with reference to such outgoings which fall under different heads. The assessee is entitled to deduction under Section 37 of all expenditure incurred for the purpose of deriving the business income, and it is under that head that the interest paid on the loan taken from the bank is deducted. The net amount of interest contemplated by Section 80AB should take in the net amount arrived at after meeting the expenses deductible from that item under the provisions of the Act as explained above. That is not the case here. Therefore, Section 80AB has no application to the facts of these cases. The interest paid on the loan transactions has to be deducted from the business income, and not from the interest received from the bank on the fixed deposits. The assessees were therefore right in the submissions which they made before the Commissioner of Income-tax in the revision pe....
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....ty from any investment with a co-operative society. It is immaterial whether any interest paid to the co- operative society exceeds the interest received from the bank on investments. The Revenue is not required to look to the nature of the investment whether it was from its surplus funds or otherwise. The Act does not speak of any adjustment as sought to be made out by learned counsel for the Revenue. The provision does not indicate any such adjustment in regard to interest derived from the co-operative society from its investment in any other co-operative society. Therefore, we do not agree with the argument advanced by learned counsel for the Revenue. In our opinion, the learned Tribunal was right in law in allowing deduction under Section 80P(2)(d) of the Incometax Act, 1961. in respect of interest of RS. 4,00,919 on account of interest received from Nawanshaln Central Co-operative Bank without adjusting the interest paid to the hank. Therefore, the reference is answered against the Revenue in the affirmative and in favour of the assessee.' 8.2 Moreover, the Bombay High Court in the case of Bai Bhuriben Lallubhai (supra) has held that the purpose for which the asse....
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....Counsel for the assessee submitted before us that rental income to the tune of Rs.3,94,590/- as not claimed as a deduction under section 80P of the Act. The Ld. Counsel for the assessee submitted that since the assessee has not claimed any deduction under section 80P of the Act in respect of the rental income, therefore no disallowance should be made. The Ld. Counsel took us through paper book page no.1 and stated that in the computation of total income, the assessee has shown income from house property separately and paid the tax therreon, therefore question of disallowance under section 80P does not arise. 15. On the other hand, ld. Sr. DR for the Revenue stated that rental income is not a part of deduction under section 80P of the Act, however the assessee, being a Co-operative Society, the rental income should be shown separately. 16. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We note that assessee has not claimed deduction under ....