2024 (12) TMI 1630

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....(here-in-after referred to as "the Act") relevant to the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal: 1. The Ld. CIT (A) has erred in law and on facts in confirming the disallowance of the deduction of Rs. 4,57,961/- claimed u/s. 80P(2)(d) of the Act in respect of the interest received from the Cooperative Banks. The interest earned from Co-operative Banks is eligible for deduction under section 80P(2)(d) as it represents income derived from investments with other co-operative societies/ cooperative Banks. It is submitted that the same be held now and disallowance be deleted. 2. The Ld. CIT (A) has erred in confirming the disallowance of the deduction of Rs. 1,73,036/- claimed u/s....

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....e assessee e-filed return of income declaring total income of Rs. Nil, after claiming deduction of Rs. 34,32,392/- u/s. 80P of the Income Tax Act 1961. The case was selected for scrutiny through CASS and subsequent notices u/s. 143(2) and 143(1) of the Act, were issued and served upon the assessee along with the questionnaire. In response, the assessee filed the submission. The Assessing Officer observed that during the assessment proceedings the assessee claimed deduction u/s. 80P of the Act, totalling to Rs. 34,33,392/- which comprises of deduction under various sub section to section 80P of the Income tax Act, including the deduction u/s. 80P(2)(d) of the Act of Rs. 1,73,036/- on account of interest received and deposits from State Bank ....

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....both the parties and perused the material available on record. It is pertinent to note that there is no dispute with the interest of Rs. 4,57,961/- was received by the assessee from Co-operative bank which is registered under Co-operative Societies Act. In the light of the decision of the Hon'ble Gujarat High Court in the case of Surat Vankar Sahakari Sangh Ltd. (Supra) the interest received from Co-operative bank are allowed u/s. 80P(2)(d) of the Act. Thus, the ground no. 1 is allowed. 8. As regard to ground no. 2 relating to disallowance of deduction of Rs. 1,73,036/- claimed u/s. 80P(2)(a)(i) of the Act, in respect of interest received from the Nationalized Bank i.e State Bank of India. The assessee has rightly claimed the interest re....