DTPS Employees Co-op Credit Society Limited Dahanu vs. Jurisdiction Ward 1, Palghar

Parties Involved

Facts Summary

For the Assessment Year 2018-19, the Appellant, DTPS Employees Co-op Credit Society Limited Dahanu, filed a return of income on 25/09/2018. The case was selected for limited scrutiny. The Assessing Officer noted that the Appellant had claimed deduction under section 80(P)(2)(a)(i) of the Act amounting to INR 35,67,407/-. The Assessing Officer disallowed INR 31,92,971/- of interest/dividend income received from Co-operative Banks, as the Appellant was not entitled to claim deduction under section 80(P)(2)(a)(i) of the Act due to provisions in Section 80(P)(4) of the Act. The Appellant appealed to the CIT(A) but the appeal was dismissed. The Appellant then appealed to the ITAT on the grounds that the interest/dividend income was received from investments made in the Co-operative Bank and therefore, the Appellant was entitled to claim for the same under section 80 P(2)(d) of the Act.…

Legal Issues

• 1. Whether a co-operative society is entitled to claim deduction under Section 80(P)(2)(d) of the Act in respect of interest/dividend income received from investment in a co-operative bank.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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