Malharimartand Machimar Vividh Karyakari Sahakari Society Limited vs. ITO, Ward-3, Panvel

Parties Involved

Facts Summary

The appellant, a Cooperative Society engaged in the business of supplying Diesel, materials required for fishing boats, and allied activities, filed its Return of Income for the assessment year 2020-21 on 15.01.2021, disclosing a total income of Rs.10,600/- after claiming a deduction of Rs.34,80,648/- under section 80P(2)(a)(i) of the Income Tax Act, 1961. The case was selected for Limited Scrutiny for verification of the deduction claimed. The Assessing Officer completed the assessment, bringing to tax the interest income of Rs.4,64,682/- earned on Fixed Deposits with Cooperative/Nationalised Banks, holding that the said interest does not qualify for deduction under section 80P(2)(a)(i) of the Act. The appellant filed an appeal before the National Faceless Appeal Centre (NFAC), which confirmed the action of the Assessing Officer. The appellant then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Eligibility of the assessee for exemption under section 80P(2)(a)(i) of the Act in respect of interest income earned from Cooperative Banks/Nationalised Banks.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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