2024 (12) TMI 1771

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....ess Appeal Centre (NFAC), Delhi ("Ld.CIT(A)") dated 28.04.2024 for A.Y. 2020-21. 2. The grounds raised by the assessee read as under : "1. The learned Commissioner of Income-tax (Appeals) erred in confirming the disallowance of deduction under Section 80P of the Income Tax Act, 1961, amounting to Rs.  6,62,116/-. 2. The learned Commissioner of Income-tax (Appeals) erred in passing an order without considering the fact that the amount of Rs.  6,62,116/- was received as interest from the State Bank of India. 3. The order of the learned Commissioner of Income-tax (Appeals) is erroneous both on facts and in law, particularly in sustaining the disallowance of Rs.  6,62,116/-." 3. The brief facts of....

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....wed as deduction u/s 80P(2)(d) as, only interest received from Co-operative Bank are only allowable as deduction under the said Section. In support of their submissions, the Ld.DR relied on the decision of hon'ble Supreme Court in the case of Totgars Co-operative Sale Society Ltd Vs. Income Tax Officer, Karnataka reported in (2010) 188 Taxmann. 282 (SC). Finally, the Ld.DR prayed before the Bench to uphold the order of Ld.CIT(A). 7. We have heard the rival submissions and gone through the record in view of the submissions made by both the parties. There is no dispute with regard to the fact that, the interest of Rs. 6,62,116/- was received from nationalized bank. The only question before us is to decide whether the assessee is e....

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....ection 80P(2)(a) of the Act and would be eligible for deduction. 7. In the cases of Ashoka Palace Co-op. Hsg. Soc. Ltd., and Hilla Heights Co-operative Housing Society Limited (supra), the claim for deduction under section 80P(2)(d) of the Act was disallowed through intimation under section 143(1) of the Act and the rectification application filed by the assessee under section 154 of the Act was rejected. Appeal filed against the order under section 154 of the Act was also rejected on the ground that the disallowance under section 80P(2) of the Act in the original assessment order under section 143(1) of the Act, but not under section 154 of the Act and, therefore, the assessee cannot challenge the order under section 154 of the Ac....

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....spect of its own amounts deposited in the nationalized banks, and if it is so, to allow the deduction under section 80P(2)(d) of the Act. Assessee should produce all the relevant material before the learned Assessing Officer and get the matter disposed of on merits." 8. We have gone through the decision of Hon'ble High Court of Andhra Pradesh in the case of the Vavveru Co-operative Rural Bank Ltd (supra), where the Hon'ble High Court in a different issue at Para Nos. 36 and 37 has held as under : "36. The original source of the investments made by the petitioners in nationalised Banks is admittedly the income that the petitioners derived from the activities listed in sub- Clauses (i) to (vii) of Clause (a). The char....