2025 (3) TMI 1866

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....2019 passed u/s.143(3) of the Act. 2. When the appeal is called for, none appeared on behalf of the assessee despite due service of notice. I therefore proceed to dispose of the appeal with the able assistance from the ld. Departmental Representative exparte qua the assessee. 3. Assessee has raised following grounds of appeal : "1. The learned JCIT(A)-8, Delhi erred in law and on facts in sustaining the disallowance made by the learned AO, of Rs. 85,973/- for deduction claimed u/s.80P of the ITA, 1961 for interest earned on fixed deposits with nationalized banks. The learned JCIT(A)-8, Delhi ought to have appreciated that fixed deposits with nationalized banks is in the normal course of business of appellant and therefore int....

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....ised Banks that the assessee has referred to certain judicial precedents. I, however, find that the case of the assessee is squarely covered against the assessee by the judgment of Hon'ble Apex Court in the case of Totgars Co-operative Sale Society Ltd. vs. ITO reported in (2010) 188 Taxman 282 (2010) (SC) and State Bank of India(SBI) vs. CIT (2016) 72 taxmann.com 64(Guj. HC) where it has been consistently held that interest earned on the surplus funds deposited with Nationalised Banks do not quality for deduction u/s.80P of the Act as they are not part of its activity. Therefore, I am inclined to hold that CIT(A) made no error in affirming the action of the AO denying deduction u/s.80P of the Act at Rs. 85,973/- earned on fixed deposits wi....