The Tungabhadra Credit Co-operative Society Vs ITO (ITAT Bangalore)
ITAT Bangalore directed AO that claim in respect of interest on fixed deposits if any is not allowed u/s. 80P(2)(d) of the Income Tax Act has to be considered in accordance with law by allowing the expenditure u/s. 57 of the Income Tax Act.
Facts- Claim of the assessee regarding deduction u/s. 80P(2)(a)(i) of the Income Tax Act was dismissed by the AO relying on the decision of Hon’ble Supreme Court in the case of Citizen Co-operative Society Ltd. vs. ACIT.
Conclusion- Held that in the first round of litigation, this Tribunal did not have the benefit of the above referred decisions by Hon’ble Supreme Court as it has been passed after this Tribunal pronounced the order. In the interest of justice, we once again remit these issues to the Ld.AO to consider the claim of assessee in accordance with the decisions of Hon’ble Supreme Court in case of Mavilayi Service Co- operative Bank Ltd. v. CIT (supra) and Kerala State Co-operative Agricultural and Rural Development Bank Ltd. vs. AO (supra). We also direct the Ld.AO to consider the decisions of this Tribunal wherein the claim in respect of interest on fixed deposits if any is not allowed u/s. 80P(2)(d) has to be considered in accordance with law by allowing the expenditure u/s. 57.
