Shreeji Co. OP. Credit Society Limited, Vadodara V. The Income Tax Officer, Ward-3(1)(3), Vadodara

ITA 2751/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6037 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 25-10-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Assessee Lawyers: M J SHAH

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH SMC BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA NO. 2751/AHD/2016 / ASSESSMENT YEAR: 2013-14 SHREEJI CO-OP. CREDIT SOCIETY LTD. B-1, BANGOTRI APARTMENT R.V. DESAI ROAD VADODARA 390 001. PAN : AAABS 0575 Q VS ITO, WARD-3(1)(3) VADODARA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M.J. SHAH, AR REVENUE BY : SHRI ADITYA SHUKLA, SR.DR / DATE OF HEARING : 14/02/2018 /DATE OF PRONOUNCEMENT : 15/02/2018 O R D E R PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF THE A SSESSEE AGAINST ORDER OF THE LD.CIT(A)-3, BARODA DATED 23.8.2016 PA SSED FOR THE ASSTT.YEAR 2013-14. 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) OF THE I NCOME 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 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 ANY BANK IS NOT DEDUCTIBLE UNDER SECTION ITA NO.2751/AHD/2016 - 2 - 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 15 TH FEB., 2018. SD/- (RAJPAL YADAV) JUDICIAL MEMBER