M/s Ijmima Imitation Jewellery Market Society Limited Vs. AO, Circle 41(3)(1)

Parties Involved

Facts Summary

The appellant assessee, M/s Ijmima Imitation Jewellery Market Society Limited, filed an appeal against the order dated 08.02.2024 passed by the Commissioner of Income-tax (Appeals) under section 250 of the Income-tax Act, 1961. The assessee had filed an income return for the Assessment Year 2018-19, declaring total income of Rs. 92,44,220/-. The Assessing Officer disallowed the interest income of Rs. 60,98,513/- earned from investments with Saraswath Co-op Bank and Mumbai District Central Co-operative Bank Ltd. The assessee appealed to the Commissioner of Income-tax (Appeals) who dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal, claiming that the disallowance was erroneous as the interest income from investments in co-operative banks should be eligible for deduction under section 80P(2)(d) of the Act.…

Legal Issues

• 1. Whether the appellant is entitled to the deduction of Rs. 60,98,513/- u/s. 80P(2)(d) of the Act on the income of interest received from investment in the aforesaid two co-operative banks?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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