The General Insurance Employees Co-operative Society Limited v. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, a co-operative society, filed an appeal against the order of the Commissioner of Income Tax (Appeals) dated 27.02.2024, which confirmed the disallowance of deduction claimed under section 80P of the Income Tax Act. The assessee argued that the Commissioner of Income Tax (Appeals) erred in applying the Full Bench judgment of the Kerala High Court and the judgment of the Supreme Court in The Citizen Co-operative Society Ltd. v. ACIT, reported in 397 ITR 1 (SC), instead of the latest judgment of the Supreme Court in Mavilayi Service Co-operative Bank Ltd. & Ors. v. CIT & Anr., reported in (2021) 431 ITR 1 (SC), which reversed the Full Bench judgment of the Kerala High Court. The assessee contended that the interest received from members, whether associate or nominal, is eligible for deduction under section 80P (2) (a) (i) of the IT Act.…

Legal Issues

• 1. The order dated 27-2-2024 passed by the CIT(Appeals) is erroneous, illegal, arbitrary and unjustified.
• 2. The CIT (Appeals) erred in confirming the disallowance of the claim under section 80P (2) (a) (i) of the IT Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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