N Sai Multi State Cooperative Credit Society Ltd. Vs. ITO, Ward 1, Latur

Parties Involved

Facts Summary

The assessee, N Sai Multi State Cooperative Credit Society Ltd., filed appeals against the orders of the Commissioner of Income Tax (Appeals) / National Financial Advisory Committee (CIT(A) / NFAC) dated 22.03.2024, which disallowed the deduction of interest income earned from investments with banks under Section 80P of the Income Tax Act, 1961. The assessee argued that the disallowance was erroneous as the interest income was earned from investments with cooperative banks, which should qualify for the deduction under Section 80P(2)(d). The Tribunal reviewed the case and found that the CIT(A) / NFAC had exceeded their jurisdiction in disallowing the deduction. The Tribunal set aside the order of the CIT(A) / NFAC and restored the order of the Assessing Officer, allowing the deduction for the interest income earned from cooperative banks.…

Legal Issues

• 1. Whether the interest income earned from investments with cooperative banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act, 1961?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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