Sumel 6 Commercial Co-op. Service Society Limited vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Sumel 6 Commercial Co-op. Service Society Limited, filed its return of income for Assessment Year 2020-21 declaring Nil income. The case was selected for scrutiny, and the assessee furnished various documents in response to notices issued by the Department. The Assessing Officer observed that the assessee was in receipt of interest income from Time Deposit obtained from the Kalupur Commercial Co-operative Bank Limited and Kankaria Maninagar Nagrik Sahakari Bank Limited amounting to Rs.1,01,92,937/-. The assessee claimed this amount as deduction under Chapter-VIA under Section 80P(2)(d) of the Act. The Assessing Officer made addition of Rs.1,01,92,937/- thereby disallowing the claim of deduction under Section 80P of the Act. The assessee filed an appeal before the CIT(A), which was dismissed. The assessee further appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Disallowance of deduction under Section 80P(2)(d) of the Act
• 2. Validity of the Assessment Order u/s. 143(3) r.w.s. 144B of the Act
• 3. Levying of interest u/s. 234A, 234B, 234C & 234D of the Act
• 4. Levying of penalty u/s. 270A of the Act

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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