INCOME TAX ACT, 1961

Section 80P

Deduction under section 80P - Allowability - Interest earned from fixed deposits made out of the surplus funds -

AO denied deduction claimed under section 80P(2)(a)(i) on allegation that interest income earned from investment of funds in commercial banks and cooperative banks/societies was not eligible for deduction. Held: Assessee was not a banking company and expression ' business of banking' cannot be given a spacious meaning to unrealistically expand term beyond. Thus, assessee was not eligible for deduction under section 80P(2)(a)(i). Interest earned from the fixed deposits made out of the surplus funds was not eligible for claim of deduction under section 80P(2)(a)(i).

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2012-13 to 2014-15

INCOME TAX ACT, 1961

Section 80P

SUBSCRIBE FOR FULL CONTENT