INCOME TAX ACT, 1961

Section 80P(2)

Deduction under section 80P(2) - Denial on the ground that assessee not carrying on the business of banking or providing credit facilities to its members - Assessee earned interest income/dividend from investment made with Co-operative Banks -

Assessee claimed deduction under section 80P(2)(d) which was denied for the reason that assessee has received interest income/dividend from investments made with Co-operative Banks. It was held by the AO that only interest income received from co-operative Societies alone would be entitled to deduction under section 80P(2)(d). Held: Assessee had not raised the plea before the lower authorities that investments are made with co-operative banks out of statutory compulsion. Assessee before the Tribunal also had not furnished the details of investments. Assessee without furnishing the necessary details cannot expect the Tribunal to restore the issue to AO for de novo consideration, especially when this case has its origin from the order of the Commissioner passed under section 263. Assessee's plea before Authorities as well as the ground raised before the Tribunal was only regarding non-granting of deduction under section 80P(2)(d), and not under section 80P(2)(a)(i). Thus, deduction claimed by assessee under section 80P(2)(a) (i) was rightly rejected.

Followed:Pr. CIT, ITO v. The Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn) 2017 TaxPub(DT) 1748 (Karn-HC), Totgars' Co-operative Sale Society Ltd. v. ITO (2015) 58 Taxmann.com 35 (Karn) and .