Ashitavinayak Nagari Sahakari Path Sanstha Maryadit vs ITO, Ward-1, Amravati

Parties Involved

Facts Summary

The assessee, Ashitavinayak Nagari Sahakari Path Sanstha Maryadit, a credit cooperative society, appealed against the order of the Additional Commissioner of Income Tax (Appeals) dated 26.02.2026, which arose from the assessment order dated 08.03.2016. The sole grievance of the assessee was the denial of deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961, for interest income of Rs. 6,49,490/- received from a nationalized bank on investments held for business purposes. The assessee claimed that the interest income was eligible for deduction as it was part of the business income for providing credit facilities to its members.…

Legal Issues

• 1. Whether the interest income earned by the credit cooperative society from investments held with nationalized banks is eligible for deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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