Shreeji Co. Op. Credit Society Ltd., Kheda V. The Income Tax Officer, Ward-5, Kheda

ITA 1330/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8446 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 01-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAURABH SINGH
• Assessee Lawyers: M J SHAH

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO. 1330/AHD/2017 / ASSESSMENT YEAR: 2013-14 SHREEJI CO-OP. CREDIT SOCIETY LTD. NR.CHORA, AT & POST: DABHAN TAL. NADIAD (DIST.KHEDA) PAN : AAAAS 6248 K VS ITO, WARD-5 NADIAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M.J. SHAH, AR REVENUE BY : SHRI SAURABH SINGH, SR.DR / DATE OF HEARING : 12/04/2018 /DATE OF PRONOUNCEMENT : 1304/2018 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF THE ASSESSEE AGAINST OR DER OF LD.CIT(A)-2, BARODA DATED 14.2.2017 PASSED FOR THE ASSTT.YEAR 20 13-14. 2. SOLITARY ISSUE INVOLVED IN THE GROUNDS OF APPEAL RELATES TO WHETHER INTEREST INCOME EARNED ON FIXED DEPOSITS WITH NATIO NALIZED BANK WOULD QUALIFY FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE INCOME TAX ACT OR NOT. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE F AIRLY CONCEDED THAT ISSUE IN DISPUTE IS SQUARELY COVERED AGAINST THE AS SESSEE BY DECISION OF ITA NO.1330/AHD/2017 - 2 - THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F STATE BANK OF INDIA VS. CIT, 389 ITR 578 WHEREIN HONBLE COURT HELD THA T INTEREST EARNED FROM INVESTMENT MADE IN NATIONALIZED BANK IS NOT DE DUCTIBLE UNDER SECTION 80P(2)(D). IN THIS VIEW OF THE MATTER, WE DISMISS THE APPEAL OF THE ASSESSEE. HOWEVER, ANY EXPENDITURE INCURRED BY THE ASSESSEE FOR EARNING SUCH INCOME COULD BE ALLOWED TO IT. IN OTH ER WORDS, THE LD.AO HAS TO DETERMINE THE NET INTEREST INCOME EARNED BY THE ASSESSEE ON SUCH INVESTMENT WITH BANK, AND ONLY THEREAFTER THAT INCO ME HAS TO BE EXCLUDED FROM THE ADMISSIBILITY OF DEDUCTION UNDER SECTION 80P(2) OF THE ACT. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON 13 TH APRIL, 2018. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 13/04/2018