TaxTMI 
TaxTMI 
2023 (4) TMI 1421
X X X X Extracts X X X X
X X X X Extracts X X X X
....0-21. 2. Brief facts of the case are, assessee is a cooperative housing society and filed its return of income on 21.10.2020 within the extended due date applicable to Cooperative Society u/s. 139(1) of Income-tax Act, 1961 (in short "Act"). During this assessment year assessee earned interest and dividend income from investments in cooperative banks for the year under consideration. Accordingly, assessee claimed deduction u/s. 80P(2)(d) in respect of the above said income earned from cooperative banks while filing the return of income. While processing the assessment u/s. 143(1) of the Act, Centralized Processing Centre, Bangalore disallowed the claim of the assessee u/s. 80P(2)(d) and has not assigned any reasons while processing the r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llenged by the appellant through the present appeal against order under section 154" without appreciating that, adjustment made in intimation under section 143(1) was beyond the scope of the section 143(1) it being not incorrect claim apparent from any information in return, and therefore refusal of application under section 154 was independent of Intimation under section 143(1). 2. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Appeal) erred in upholding action of the Assessing Officer in making disallowance of claimed under section 80P without appreciating that these were not incorrect claims apparent from any information in the Return of Income in terms of section 143(1) of the In....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Section 80P of the Income Tax Act, 1961 without considering the facts, that the appellant had made a rectification request under Section 154 of the Income tax Act, 1961 for re-processing the return of income but, the reprocessing of the return of income was considered on the same lines as intimation issued in terms of section 143(1) of the Income Tax Act, 1961. 6. Your Appellant craves leave to add to, amend, alter, modify, and / or delete any of the above grounds of appeal at or before final disposal of appeal." 5. At the time of hearing, Ld. AR submitted that in 143(1) proceedings, claim of the assessee u/s. 80P(2)(d) was disallowed and he brought to our notice the findings of the Ld.CIT(A). However, Ld.CIT(A) has not decided....
X X X X Extracts X X X X
X X X X Extracts X X X X
....see in the case of Ashoka Palace Co-Op. Hsg. Soc. Ltd. v. ITO (supra) observing as under: - "5. Both sides heard, orders of authorities below examined. The solitary issue raised by the assessee in appeal is with respect to assessee's eligibility to claim deduction u/s. 80P(2)(d) of the Act on interest income from deposits with Co-operative banks. It is not in dispute that the assessee has earned interest income from deposits with Co-operative Bank. The authorities below have denied the benefit of section 80P(2)(d) of the Act to the assessee on the premise that the interest income is not eligible for deduction u/s. 80P(2)(d) of the Act. 6. The issue whether interest income derived from deposits with cooperative banks is eli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the co-operative society from its investments with any other cooperative society, the whole of such income; Thus, from a perusal of the aforesaid Sec. 80P(2)(d) it can safely be gathered that income by way of interest income derived by an assessee co-operative society from its investments held with any other cooperative society, shall be deducted in computing the total income of the assessee. We may herein observe, that what is relevant for claim of deduction under Sec. 80P(2)(d) is that the interest income should have been derived from the investments made by the assessee co-operative society with any other cooperative society. We though are in agreement with the observations of the lower authorities that with the insertion of S....