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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
PER R.S. SYAL, VP: This appeal filed by the assessee is directed against the order dated 16-03-2022 passed by the 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 2018-19. 2. The only issue raised in this appeal is against the denial of deduction u/s.80P(2)(a)(i) in respect of interest income of
Maharashtra Bank Employees Co.op Credit Society Ltd., Rs.5,59,36,832/- received on deposits kept with Bank of Maharashtra.
Briefly stated, the facts of the case are that the assessee furnished its return declaring total income at Nil after claiming deduction u/s.80P(2)(a)(i) of the Act. The Assessing Officer (AO) observed that the deduction was claimed with reference to interest income earned from banks which was not eligible for deduction u/s.80P. He, therefore, dismissed the assesee’s claim which came to be countenanced in the first appeal.
We have heard both the sides and gone through the relevant material on record. It is seen that similar issue came up for consideration before the Tribunal in assessee’s own case for the A.Y. 2014-15 (ITA No.1763/PUN/2017, order dated 06-08-2019) albeit in the appeal preferred by the Revenue. After examining the relevant points and following other orders passed by the Pune Benches, the Tribunal upheld the eligibility of deduction u/s.80P on such interest income. Both the sides are in agreement that the facts and circumstances are similar. Respectfully following the precedent, we overturn the impugned order and direct to grant the deduction u/s.80P(2)(a)(i) on such interest income.
Maharashtra Bank Employees Co.op Credit Society Ltd.,
In the result, the appeal is allowed. Order pronounced in the Open Court on 20th December, 2022.