2024 (8) TMI 1692

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.... Dated 26/02/2024 for the Assessment Year 2021-22. 2. Following grounds of appeal have been raised by the appellant: 1. "The Intimation bearing DIN: CPC/2122/A5/310702433, dated 19th October 2022, under section 143(1)(a) of the Income Tax Act. 1961 ("the Act") and the Order, dated 26 February 2024, of the ADDL / JCIT(A) confirming rejection of deduction of Rs.2,88,120/- is bad in law and against the spirit of Section 143(1)(a) of the Act as no adjustment was warranted under Section 80P(2)(d) based on binding decisions of Jurisdictional Mumbai Tribunal. 2. On the facts and circumstance of the case, under the provisions of Section 143(1)(a), the ADDL/JCIT(A) erred in confirming the rejection of claim under section 80P(2)(....

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....enged the order passed u/s. 143(1) before the Ld. CIT (A) and claimed that the deduction u/s. 80P(2)(d) is clearly allowable in the case of the appellant by placing reliance on various decisions of the Hon'ble High Court including the Hon'ble Supreme Court. The Ld. CIT(A), however, dismissed the appeal of the appellant on the ground that the Hon'ble Supreme Court has decided against the assessee in the case of Totagars Co-Operative Society Limited vs. ITO [2010] 322 ITR 283 (SC). Aggrieved by the order of the Ld. CIT (A), this appeal has been filed. 4. During the appellate proceedings before us, the appellant referred to various decisions of the Coordinate Benches of ITAT (Mum.), wherein, the Hon'ble ITAT has allowed the ....

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....on 80P(2)(d) of the Act in respect of interest earned from Co-operative Bank. No decision of the Hon'ble jurisdictional High Court was brought to our notice on this aspect. We have to, with our highest respect to both the views of the Hon'ble High Court, adopt an objective criterion for deciding as to which decision of the Hon'ble High Court should be followed by us. We find guidance from the judgment of the Hon'ble Supreme Court in CIT v. Vegetable Products Ltd [1973] 88 ITR 192. In the aforesaid decision, the Hon'ble Supreme Court has laid down a principle that "if two reasonable constructions of a taxing provisions are possible, that construction which favours the assessee must be adopted". 14. Therefore, in view....