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

Parties Involved

Facts Summary

The assessee, Shrikrupa Nagari Sahakari Pathsanstha Maryadit, a cooperative credit society registered under the Maharashtra Co-operative Societies Act, claimed a deduction under section 80P(2)(d) of the Income Tax Act, 1961 for interest income of Rs.59,16,449/- on investments made with cooperative banks. The Assessing Officer disallowed the deduction. The CIT(A) / NFAC dismissed the appeal filed by the assessee, observing that cooperative societies are not entitled to claim deduction under section 80P(2)(d) for interest income from deposits made in cooperative banks. The assessee appealed to the Tribunal, arguing that the cooperative banks are registered under the Co-Operatives Societies Act and that the disallowance was erroneous.…

Legal Issues

• 1. Whether the Ld. National Faceless Appeal Centre (NFAC) erred in confirming the disallowance of deduction under section 80P(2)(d) of the Income-tax Act, 1961 for interest received from deposits kept in cooperative banks.
• 2. Whether the Ld. INFAC erred in not following the judgments of the jurisdictional Tribunal which held that deduction under section 80P(2)(d) of the Act is eligible in respect of interest received from cooperative banks.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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