Narath Service Co-operative Bank Limited v. The Income Tax Officer

Parties Involved

Facts Summary

Narath Service Co-operative Bank Limited, the appellant, filed an appeal against the order of the Commissioner of Income-tax (Appeals) / NFAC dated 12.06.2023, which disallowed interest on investments with Kannur District Co-operative Bank under section 80P(2)(d) of the Income Tax Act, 1961. The appellant argued that the disallowance was against the facts and circumstances of the case and opposed to the provisions of the Income-tax Act. The respondent, represented by Smt. V. Swarnalatha, Sr. DR, argued that the disallowance was rightly made. The Tribunal adopted the reasoning of the High Court in CIT v. Peroorkada Service Co-operative Bank, which held that interest income earned from Co-operative Societies registered under the Co-operative Societies Act is eligible for deduction under section 80P(2)(d).…

Legal Issues

• 1. Whether the disallowance of interest on investments with Kannur District Co-operative Bank under section 80P(2)(d) of the Income Tax Act, 1961 is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Umayanallor Service Co-op. Bank Ltd. vs. The Income Tax Officer

  Cochin bench

• Nedumon Service Co-op. Bank Ltd. vs. The Income Tax Officer

  Cochin bench

• Mala Block Town Co-operative Bank Limited v. The Income Tax Officer

  Cochin bench

• Kottayam Service Co-operative Bank Limited v. The Income Tax Officer

  Cochin bench

• Ramanthali Service Co-op. Bank Ltd. vs. The Income Tax Officer - 3

  Cochin bench

• Shrikrupa Nagari Sahakari Pathsanstha Maryadit vs. ITO, Ward 3, Panvel

  Pune bench