TaxTMI 
TaxTMI 
2024 (2) TMI 333
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....rcumstances of the case, the learned Commissioner of Income tax (Appeals) has erred in not granting deduction in respect of interest and dividend received from Co.Op Bank. 3. On the facts and circumstances of the case, the learned Commissioner of Income tax (Appeals) has erred in raising demand of Rs. 3325481/-. 4. Under facts and circumstances of the case, the learned Commissioner of Income tax (Appeals) has erred in calculating demand raised as wrong rate is applied to the appellant total income. 5. On the facts and circumstances of the case, the learned Commissioner of Income tax (Appeals) has erred in not appreciating that there are various decision in favour of the appellant. 6. On the facts and circumstances of the case, the learned Commissioner of Income tax (Appeals) has erred in simply copying the appellant order of AY.2015-16 and has further erred in mentioning wrong facts of AY.2015-16 in the order for AY.2018-19. 7. The appellant reserves right to add, alter, vary or all grounds of appeal." 3. At the outset, I note that appeal filed by the assessee is barred by limitation by one hundred forty six (146) days. The assessee m....
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....ed to the assessee. The Ld. Counsel for the assessee took me through the findings of the ld. CIT(A) and stated that ld. CIT(A) has just copy paste the previous year's order of the assessee and has allowed the appeal of the assessee, stating as follows: "7.8 In view of the above binding judgments of the Hon'ble Supreme Court, the jurisdictional High Court, jurisdictional Tribunal and other various orders cited by the Appellant, I am declined to agree with the submissions made by the Appellant. Thus, the interest income earned from deposits in co-operative Banks by the Appellant assessee is held to be eligible for deduction under Section 80P(2)(d) of the Act. Hence, the action of the Ld. AO with regard to denial of deduction u/s 80P on the grounds mentioned in the assessment order is found unsustainable. Thus the ground of the Appellant on this aspect is Allowed." 9. Therefore, Ld. Counsel for the assessee submitted that matter may be remitted back to the file of the Assessing Officer with the direction to allow the deduction under section 80P(2)(d) of the Act. The Ld. Counsel also submitted that the Assessing Officer has not computed the correct demand as per the pro....
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....he 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 petitions which they filed. This aspect of the matter has been overlooked by the Commissioner in passing the order, exhibit P-5.' 8.1 Similarly, in the case of Doaba Co-operative Sugar Mills Ltd (supra), the Punjab & Har....
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....ature 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 cooperative 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 Income- tax 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 assessee borrowed money had no connection whether direct or indirect with the income which she earned from the fixed deposit and that she was not entitled to the deduction claimed under Section 12(2). The High Court held that if an....