U/s 80P claim closed, but cost of funds gets second chance: ITAT remands Sec 57 issue

Kanaka Credit Co-operative Society Ltd. Vs ITO (ITAT Bangalore) The ITAT Bangalore held that once the issue of eligibility of deduction under section 80P on interest from bank deposits has attained finality, it cannot be reopened in subsequent proceedings arising from an order giving effect. In this case, the assessee’s claim for deduction under section 80P on interest income from deposits with cooperative and nationalised banks had already been rejected by the CIT(A) in earlier proceedings, and the assessee did not appeal further. Therefore, the Tribunal held that the issue stood concluded ...