Kamalpur Jotekanuragarh S K U S Limited Vs. ACIT, Circle-38, Medinipur

Parties Involved

Facts Summary

The assessee is a Primary Agricultural Cooperative Credit Society registered under the West Bengal Cooperative Societies Act, 2006. It is engaged in the business of fertilizers, seeds, providing KCC loans to members, SHG loans, and banking with farmer members and local villagers. The assessee did not file the return of income for A.Y. 2017-18, and the case was selected for scrutiny under ‘Operation Clean Money’. During the demonetization period, the assessee deposited ₹ 36,00,000/- into its bank…

Legal Issues

• 1. Whether the learned Commissioner of Income tax (Appeals) was justified in denying the deduction of Rs 8,66,130/- u/s. 80P(2)(a)(i) and 80P(2)(a)(iv), 80P(2)(d) for not filing the income tax return for FY 2016-17 relating to AY 2017-18.
• 2. Whether the learned Commissioner of Income tax (Appeals) erred in law and facts by not allowing the deduction u/s.80P(2)(a)(i) to the extent of the profit earned on providing credit facilities to its members.

Precedents Relied Upon

2 precedents cited in this judgement.

Judgment Outcome