ITAT restores matter to AO to determine Deduction of Business Income and Interest Income [Read Order]

ITAT - AO - deduction of business income - interest income - Taxscan

The Income Tax Appellate Tribunal (ITAT), Bangalore Bench restored the matter to the assessing officer so as to determine the deduction in respect of business income and interest income.

The assessee, Rajapura Saraswatha Credit Co-op. Society Ltd. has filed the appeal challenging the order passed by CIT(A), Mangaluru and it relates to the assessment year 2015-16. The issues urged by the assessee in its grounds of appeal relate to the rejection of deduction under section 80P(2)(a)(i) of the Act in respect of its business income and rejection of deduction under section 80P(2)(d) of the Act in respect of interest income.

The coram headed by the Vice President, N.V. Vasudevan said that the issue of deduction u/s 80P(2)(a)(i) and  Section 80P(2)(d) of the Act require fresh examination at the end of the AO. Accordingly, the order passed by CIT(A) on this issue in the year under consideration is set aside and restored to the file of the A.O.

By way of additional grounds, the assessee is contesting the disallowance made by the AO in respect of Provision for bad debts, Provision for gratuity fund, provision of audit fees, and provision for leave encashment. The assessee submitted that the assessee has omitted to challenge the above-said additions before CIT(A).

“We are of the view that both the above-said issues require fresh consideration at the end of the A.O., since the main issues have been restored to the file of the A.O. and the decision taken on them may have an impact on the above-said additions. Accordingly, we restore all the above-said issues to the file of the A.O. for examining them afresh,” the ITAT said.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in

taxscan-loader