Jankalyan Multistate Co-operative Credit Society Limited vs. ITO, Ward-1(1), Solapur

Parties Involved

Facts Summary

The assessee is a Multi-State Credit Cooperative Society engaged in providing credit facilities to its members. The assessee filed an income return on 31.12.2020, declaring nil income after claiming a deduction of Rs.56,09,466/- under section 80P of the IT Act. The Assessing Officer disallowed the deduction claimed under section 80P(2)(a)(i)/80P(2)(d) of the IT Act, and the order was confirmed by the ld. CIT(A)/NFAC. The assessee appealed to the Income Tax Appellate Tribunal, which allowed the appeal and directed the Assessing Officer to allow the deduction of Rs.56,09,466/- under section 80P(2)(a)(i)/80P(2)(d) of the IT Act.…

Legal Issues

• 1. Whether the Assessing Officer and CIT(A) were correct in disallowing the deduction?
• 2. Whether the interest income earned from cooperative banks is eligible for deduction under section 80P?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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