Bhagwan Shree Agrasen Nagari Sahakari Patsanstha Maryadit vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Bhagwan Shree Agrasen Nagari Sahakari Patsanstha Maryadit, filed its return of income for the Assessment Year 2022-23 on 26/12/2022, declaring total income at Rs.1,00,000/- after claiming deductions of Rs.31,46,806/- under section 80P of the Income Tax Act, 1961. The Central Processing Centre (CPC) processed the return on 17/02/2023, resulting in a demand of Rs.6,47,810/- after disallowing the deductions claimed by the assessee under section 80P of the Act. The assessee filed a rectification application requesting to allow the 80P deductions, which was rejected by the Assessing Officer (AO) on 29.08.2025. The assessee then filed an appeal against the rectification order, which was heard on 08-09-2026 and pronounced on 10-09-2026.…

Legal Issues

• 1. The learned AO has erred in denying/rejecting the claim of deduction made by the assessee under section 80P(2) of Rs.31,46,806/- and the learned CIT (A) erred in confirming the same.
• 2. There is an error of assessing and taxing the entire income of the assessee from its activities which is otherwise not taxable under the principle of mutuality and under the governing provisions of law being a registered Co-op. credit society.
• 3. The learned AO has erred in disallowing the deduction claimed by the assessee under section 80P(2) and erred in rectifying such claim despite compliance with relevant provisions and the learned CIT (A) erred in confirming the same.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

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

  Nagpur bench

• Mahalaxmi Jagdamba Nagrik Gramin Credit Cooperative Society vs. Income Tax Officer

  Nagpur bench

• The Belthangady Co-operative Agricultural Sangha Limited Vs. The Income Tax Officer

  'B' Bench, Bangalore benchAY 2017-18 & 2018-19Partly Allowed

• Sterling Court F Wing Co-op. Housing Society Ltd. vs. ITO, Ward-31(2)(1)

  SMC Bench, Mumbai benchAY 2012-13, 2013-14, 2014-15Allowed

• M/s. Primary Agricultural Credit Co-operative Society Ltd. Vs. The Income Tax Officer, Ward – 2, Tumkur

• Jayesh Jain vs. The Deputy Commissioner of Income Tax

  Ahmedabad bench