INCOME TAX ACT, 1961

Section 80P(2)(d)

Deduction under section 80P(2)(d) - Allowability - Co-operative bank interest and co-operative dividend -

Assessee-co-operative society claimed deduction under section 80P. AO noticed that the assessee earned interest income from nationalized banks and other co-operative banks. Assessee submitted that it had not claimed nationalized banks interest in section 80P(2)(d), however, it only claimed co-operative bank interest and co-operative dividend under section 80P(2)(d). However, the AO held that interest received from other than co-operative societies, was not eligible for deduction under section 80P(2)(d) and hence disallowed the same. On appeal, CIT(A) deleted the said disallowance. Held: In view of decision of High Court in the case of The Surat Vankar Sahakari Sangh Ltd. v. Asstt. CIT 2016 TaxPub(DT) 3733 (Guj-HC), interest income received from co-operative bank is allowable under section 80P(2)(d). In instant case, assessee had not claimed nationalized bank interest in section 80P(2)(d), it only claimed co-operative bank interest and co-operative dividend under section 80P(2)(d). Therefore, the assessee was eligible to claim deduction under section 80P(2)(d) on interest and dividend income received from co-operative societies and co-operative bank.

Followed:The Surat Vankar Sahakari Sangh Ltd. v. Asstt. CIT 2016 TaxPub(DT) 3733 (Guj-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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