Case Law Details
Gnana Shale Souhardha Cooperative Limited Vs PCIT (ITAT Bangalore)
ITAT Bangalore held that interest on deposits kept with scheduled banks only the net interest, i.e., the interest income reduced by the administrative expenses and other proportionate expenditure to earn the said income had to be brought to tax u/s 56 of the I.T.Act.
Facts- The assessee is a co-operative society, providing credit facilities to its members. For AY 2015-2016, the ROI was filed on 21.09.2015 declaring `Nil’ income after claiming deduction u/s 80P of the I.T.Act. The assessment was completed vide order dated 26.12.2017 u/s 143(3) of the I.T.Act by accepting the returned income.
The PCIT issued notice u/s 263 of the I.T.Act, since accordingly to him, the assessee had earned interest income of Rs.15,08,488 on account of investments made with other co-operative banks and the said income is not entitled to deduction u/s 80P(2)(a)(i) and 80P(2)(d) of the I.T.Act.
Aggrieved by the order of the PCIT, the assessee filed the present appeal before the Tribunal.
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