The Ladol Vividh Karyakari Sahakari Mandli Ltd., V. The Income Tax Officer, Patan Ward- 3, Mehsana

ITA 2710/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8637 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 27-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 09-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL
• Section: 2

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA.NO.2710/AHD/2014 / ASSTT. YEAR: 2011-12 THE LADOL VIVIDH KARYAKARI SAHAKARI MANDLI LTD. AT : LADOL TAL: VIJAPUR 382 840. VS ITO, WARD - 3 MEHSANA HIGHWAY ROAD MEHSANA. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI M.K. PATEL, ADVOCATE REVENUE BY : SHRI PRASOON KABRA, SR.DR / DATE OF HEARING : 08/08/2017 / DATE OF PRONOUNCEMENT: 08 /09/2017 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF LD.CIT(A), GANDHINAGAR DATED 24.6.2014 PASSED FOR THE ASSTT.YE AR 2011-12. 2. SOLE ISSUE INVOLVED IN THIS APPEAL IS WHETHER IN TEREST INCOME EARNED ON FIXED DEPOSITS WITH NATIONALIZED BANKS WOULD QUALIT Y FOR DEDUCTION UNDER SECTION 80P(2) OR NOT. 3 IT HAS BEEN CONCEIVED BEFORE US THAT THIS CONTROV ERSY HAS BEEN SILENCED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CAS E OF STATE BANK OF INDIA VS. CIT, 389 ITR 578. THEREFORE, ASSESSEE IS NOT E NTITLED FOR DEDUCTION UNDER ITA NO.2710 /AHD/2014 2 SECTION 80P(2) ON THE INTEREST INCOME EARNED FROM T HE FIXED DEPOSITS MADE WITH THE NATIONALIZED BANKS. HOWEVER, ANY EXPENDITU RE INCURRED BY THE ASSESSEE FOR EARNING SUCH INCOME COULD BE ALLOWED T O IT. IN OTHER WORDS, THE LD.AO HAS TO DETERMINE THE NET INTEREST INCOME EARN ED 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 8 0P(2). ACCORDINGLY, WE ALLOW THE APPEAL OF THE ASSESSEE PARTLY. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 8 TH SEPTEMBER, 2017 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 08/09/2017