DCIT vs. Rajkot LodhikaSahakariKharidVechan Sangh Limited

Parties Involved

Facts Summary

The assessee, Rajkot LodhikaSahakariKharidVechan Sangh Limited, is a cooperative society engaged in various businesses including the supply of fertilizer, seeds, equipment, running oil mills, trading in edible oil, renting godowns, and earning interest and dividend income from investments. The assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2020-21, challenging the disallowance of deductions under Section 80P(2)(d) of the Income Tax Act for interest and dividend income earned from investments in a cooperative bank. The Revenue argued that interest and dividend income from cooperative banks are not eligible for deduction under Section 80P(2)(d) of the Act. The assessee argued that the old judgments of the Gujarat High Court allowed such deductions. The Tribunal held that the assessing officer's view was sustainable in law and based on valid precedents.…

Legal Issues

• 1. Whether interest and dividend income from investments in a cooperative bank are eligible for deduction under Section 80P(2)(d) of the Income Tax Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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