ED-1330 Karumandurmedu MPCS Ltd. vs. The Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, ED-1330 Karumandurmedu MPCS Ltd., filed an appeal against the disallowance of interest income deduction under section 80P(2)(d) of the Income Tax Act, 1961. The assessee claimed a deduction of ₹.1,72,880/- earned as interest income from a Co-operative Bank, out of which ₹.1,58,273/- was from fixed deposits (FDs) and ₹.14,607/- from a savings account. The Assessing Officer disallowed the entire deduction, and the Commissioner of Income Tax (Appeals) confirmed the disallowance of ₹.14,607/- on the ground that the amount kept in the savings bank account is not an investment.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) is justified in confirming the disallowance of ₹.14,607/- as interest income from a savings account.

Judgment Outcome

Decided in favour of Assessee.

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