2023 (1) TMI 1519

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....against the confirmation of disallowance of Rs. 44,95,319/- by Ld. CIT(A) as made by the AO by rejecting the deduction claimed u/s 80P(2)(a)(i) of the Act in respect of interest on loan from the bank deposits. 3. Facts in brief are that the assessee filed return of income on 30.10.2018 declaring total income at Nil which was processed u/s 143(1) of the Act accepting the returned income. Thereafter the case of the assessee was selected for scrutiny under CASS. During the assessment proceedings the AO observed that assessee has shown net income of Rs. 44,95,319/- from of total receipts of Rs. 3,57,58,634/- which included interest income of Rs. 2,98,28,543/-. The AO further noted that the assessee has claimed the whole of its income as dedu....

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....n claimed to the income of the assessee thereby assessing the income of Rs. 44,95,319/- in the assessment framed. 4. In the appellate proceedings, the Ld. CIT(A) dismissed the appeal of the assessee by upholding the order of AO by relying on the decision of Hon'ble Apex Court in the case of Totagars Co-op Sale Society Ltd. (supra). 5. The Ld. Counsel submitted before the Bench that the order passed by the Ld. CIT(A) is wrong and against the facts on record. The Ld. A.R made threefold submissions before the Bench namely i) interest on saving accounts should be allowed u/s 80P in terms of the Co-ordinate Bench decision in the case of Rabindra Bharati University Co-operative Credit Society Ltd. vs. ITO in ITA Nos. 584 & 585/Kol/2021 date....

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....from the other sources. The Ld. A.R. therefore prayed that the appeal may be restored to the file of the AO so that all the issues could be looked into and decided accordingly as per facts of the case. 6. The Ld. D.R on the other hand relied on the order of authorities below. 7. After hearing the rival contentions and perusing the material on record, we find merit in the three fold submissions made by the assessee as discussed hereinabove. Accordingly we deem it fit and proper to restore this issue to the file of the AO to decide these issues in terms of our following directions: i) interest from saving accounts should be allowed u/s 80P in terms of decision of Hon'ble Calcutta High Court in the case of CIT vs. South Eastern Railway E....