| The Tax Publishers2021 TaxPub(DT) 5863 (Ahd-Trib) INCOME TAX ACT, 1961
Section 254(2)
Where assessee co-operative society was eligible for deduction under section 80P(2)(d) in respect of gross amount of interest received from other co-operative societies, thus, Tribunal committed an error, which was apparent one by directing AO to compute only net interest income received from other co-operative societies for the purpose of section 80P(2)(d) and hence, the Tribunal's order was liable to be revised to that extent.
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Appeal (Tribunal) - Rectification under section 254(2) - Mistake apparent - Tribunal directed to compute only net interest income received from other co-operative societies for purpose of section 80P(2)(d)
Assessee-co-operative society filed a miscellaneous application pointing out apparent error in an order of Tribunal. It was submitted that the Tribunal in the order, directed AO to compute net interest income from cooperative societies, and thereafter grant deduction under section 80P(2)(d) to the assessee, however, the expression'whole of such income' had been employed in section 80P(2)(d), and therefore, for the purpose of computing deduction admissible under section 80P(2)(d), income which was to be excluded was gross income of interest mentioned in section 80P(2)(d). Thus, the AO had to compute the gross interest income, which was to be excluded from the income of the assessee under section 80P(2)(d). Held: Section 80P(2)(d) allows whole deduction of an income by way of interest or dividends derived by co-operative society from its investment with any other co-operative society. Further, in case of the Surat Vankar Sahakari Sangh Ltd. v. Asstt. CIT (2016) 72 Taxmann.com 169 (Guj-HC) : 2016 TaxPub(DT) 3733 (Guj-HC), Jurisdictional High Court held that assessee co-operative society was eligible for deduction under section 80P(2)(d) in respect of gross amount of interest received from other co-operative societies. Thus, in view of the said decision of the Jurisdictional High Court, the Tribunal committed an error, which was apparent one by directing AO to compute only net interest income for the purpose of section 80P(2)(d). Hence, the Tribunal's order was revised to that extent and the AO would grant deduction under section 80P(2)(d) of whole interest income i.e. gross interest income to the assessee.
Followed:Surat Vankar Sahakari Sangh Ltd. v. Asstt. CIT (2016) 72 Taxmann.com 169 (Guj-HC) : 2016 TaxPub(DT) 3733 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
IN THE ITAT, AHMEDABAD BENCH
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