ITO, Ward-2, Ahmednagar. Vs. Kanhur Pathar Multi State Co-operative Credit Society Maryadit Kanhur

Parties Involved

Facts Summary

The assessee is a multi-state cooperative credit society registered under the Maharashtra Co-operative Societies Act. The society's primary objective is to collect deposits from its members and lend the amounts to needy members on interest. The assessee filed an income return on 03.10.2018, declaring nil income after claiming a deduction of Rs.1,61,47,520/- under section 80P(2)(a)(i) of the IT Act. During the assessment proceedings, it was found that the assessee earned interest income of Rs.6,28,12,514/- from investments in various cooperative and commercial banks. The Assessing Officer disallowed the deduction under section 80P, leading to the assessee filing an appeal before the Commissioner of Income Tax (Appeals). The Commissioner allowed the appeal, and the Revenue filed an appeal before the ITAT.…

Legal Issues

• 1. Whether the deduction under section 80P is allowable for interest income earned from investments in banks?

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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