NASHIK ROAD NAGARI SAHKARI PATSANSTHA MARYADIT,NASHIK vs. INCOME TAX OFFICER, WARD-1(2), NASHIK, NASHIK

This appeal by the assessee is directed against the order dated 25-02-2023 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2014-15.

The only issue raised in this appeal is against denial of deduction u/s.80P in respect of interest income earned from the deposits kept with Nationalised bank.

Briefly stated, the facts of the case are that the asessee is a Cooperative credit society engaged in the business of providing credit facilities to its members. It claimed deduction u/s.80P(2) in respect of interest income of Rs.3,04,556/- from the deposits kept with Bank of Baroda. The Assessing Officer (AO) did not allow the deduction, which action came to be affirmed in the first appeal.

Having heard the rival submissions and perused the relevant material on record, it is seen that the issue of granting deduction u/s.80P(2)(a)(i) in respect of interest income from nationalized banks has been decided in favour of the assessee by the Tribunal in several cases including the assessee’s own case for the immediately preceding assessment year 2013-14. A copy of such order dated 27- 12-2021 has been placed on record. Relevant discussion has been made in para No.9 granting deduction u/s 80P(2)(a)(i) on account of interest received from the deposits kept with Bank of Baroda in the form of Fixed deposit. Such decision has not been modified of reversed in any manner. Respectfully following the precedent, I order to grant deduction u/s 80P on the interest income earned from Bank of Baroda.

In the result, the appeal is allowed. Order pronounced in the Open Court on 07th June, 2023.