2023 (6) TMI 1483

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....ct'). The assessee in this appeal has taken the following grounds of appeal: 1. That on the facts and circumstances of the case, the CIT(A) erred in upholding the action of the assessing officer in disallowing deduction of Rs. 16,86,273/- under section 80P(2)(a)(i) of the Income Tax Act, 1961 on the ground that interest income of Rs. 16,86,273/- earned from fixed deposits/investments with State Bank of India is not derived from business and was taxable under the head 'income from other sources', which is not eligible for deduction under that section. Appellant prays for allowing the same. 2. That appellant kept its fund in term-deposit in compliance of the provisions of West Bengal Cooperative Societies Act, which ....

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.... Rs. 62,254/-. Subsequent to that, the case of the assessee was selected for scrutiny and assessment was completed on 28.12.2016 u/s 143(3) of the Act. While framing the assessment, the ld. AO disallowed claim of assessee of Rs. 16,86,273/- u/s 80P of the Act by holding that since the assessee earned alleged interest amount from the SBI and same is not eligible for deduction u/s 80P of the Act. 3. Aggrieved by the above order, assessee preferred an appeal before the ld. CIT(A). However, the appeal of the assessee was dismissed. 4. Dissatisfied with the above order, assessee preferred an appeal before the Tribunal. 5. At the time of hearing, the ld. AR submitted before the bench that the ld. CIT(A) erred in upholding the action of a....