2024 (7) TMI 1662

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....essment order passed under Section 143(3) of the Income-tax Act, 1961 (the Act) by the Income Tax Officer, Ward 22(2)(5), Mumbai (the learned Assessing Officer) dated 21st November, 2016, was dismissed. The assessee is aggrieved with the same and has preferred the appeal raising following grounds of appeal:- "1. The learned CIT(A) erred in relying on the Supreme Court's decision in Totgar's Co-operative Sales Society Ltd. which judgment is delivered in the context of sec. 80P(2)(a)(i) and wherein it was held that interest on surplus funds deposited with banks bears the character of income from other sources and not business income, whereas the appellant has claimed deduction under sec. 80P(2)(d) which does not confine the deductio....

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....2)(d)(ii) is allowable. Assessee submitted that the interest income is received from Maharashtra State Co-operative Bank, Shamrao Mittal Co-operative Bank, Saraswat Co-operative Bank Ltd and Cosmos Bank Co-operative Ltd, which are co-operative societies under the co-operative Act. The learned Assessing Officer rejected the contention of the assessee and disallowed the above deduction. The assessment order under Section 143(3) of the Act was passed on 21st November 2016, determining the total income of the assessee at Rs.43,91,580/- by disallowing the deduction under Section 80P(2)(d) of the Act on interest income from co-operative banks amounting to Rs.39,43,686/-. 03. Aggrieved with the assessment order, assessee preferred the appeal befo....