The Jagraon Co-operative Marketing Cum Processing Society Ltd. vs. The ITO

Parties Involved

Facts Summary

The Jagraon Co-operative Marketing Cum Processing Society Ltd. is a cooperative society registered with the Registrar of Societies since 1955. The society is engaged in marketing of agriculture produce, purchase of agriculture implements, seeds, livestock, etc. for supplying to its members, and letting out of godowns/warehouses for storage purposes. The society filed its return of income for the Assessment Year 2020-21, declaring a net taxable income of Rs. 58,120/- after claiming deductions under section 80-P of the Act. The Assessing Officer assessed the income at Rs. 29,50,612/- and disallowed the deduction claimed under section 80P of the Act on account of interest received from The Ludhiana Central Cooperative Bank Limited. The society appealed against the order of the Commissioner of Income Tax (Appeals), which dismissed the appeal and confirmed the disallowance. The society argued that the interest income from The Ludhiana Central Cooperative Bank is eligible for deduction under section 80P(2)(d) of the Act, as it is a cooperative society registered under the Co-operative Societies Act, 1912. The society cited several precedents to support its claim, including judgments from the Chandigarh Bench of the ITAT and the Supreme Court.…

Legal Issues

• 1. Whether the interest income received by the cooperative society from The Ludhiana Central Cooperative Bank is eligible for deduction under section 80P(2)(d) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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