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| The Tax Publishers2020 TaxPub(DT) 1946 (Bang-Trib) INCOME TAX ACT, 1961
Section 80P
Where AO disallowed deduction under section 80P claimed by assessee alleging that section 80P(2)(d) does not contain word “bankâ€, matter was restored to CIT(A) for fresh decision because factual aspect regarding source of funds deposited on bank on which interest income was earned was not considered.
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Deduction under section 80P - Allowability - Interest received from Co-operative Bank on fixed deposit -
Assessee was a Co-operative Milk Producers society, registered under Karnataka Souharda Sahakari Act, 1997. It provided credit facilities to its members. It claimed deduction under section 80P on interest received from Co-operative Bank on fixed deposit. AO disallowed the same alleging that section 80P(2)(d) does not contain word “bankâ€. Held: As facts in instant case were not readily available on record and there was no finding of authorities below on factual aspect regarding source of funds deposited on bank on which interest income was earned, issue was sent back to file of CIT(A) for fresh decision. Regarding applicability of Apex Court decision in case of The Citizen Co -- Operative Society Ltd., vs. ACIT also, CIT(A) should pass speaking and reasoned order after comparing facts of assessee's case.
REFERRED : The Citizen Co-Operative Society Limited v. ACIT (2017) 397 ITR 1 (SC) : (2017) TaxPub(DT) 2053 (SC); PCIT v. Totagars Co-Operative Sale Society (2017) 395 ITR 611 (Karn) : (2017) TaxPub(DT) 1748 (Karn-HC); Tumkur Merchants Souharda Credit Cooperative Limited v. ITO (2015) 230 Taxmann 309 (Karn) : 2015 TaxPub(DT) 2857 (Karn-HC); Siddartha Pattina Souharda Sahakari Niyamitha v. ITO, [ITA No.1234/ Bang/2019, dt. 26-7-2019]
FAVOUR : In assessee's favour by way of remand
A.Y. :
IN THE ITAT, BANGALORE BENCH
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