Lunawada Urban Co-op Credit Society Ltd. vs The ITO, Ward-1, Lunawada

Parties Involved

Facts Summary

The assessee, Lunawada Urban Co-op Credit Society Ltd., is a co-operative credit society engaged in providing credit facilities and financial services to its members. The assessee filed its return of income on 18-12-2017 declaring total income of Rs. 1,77,000/- and claimed a deduction of Rs. 11,78,122/- under section 80P of the Act. The case was selected for complete scrutiny, and the assessment was completed under section 143(3) of the Act, thereby disallowing the deduction to the extent of Rs. 11,78,126/-. The assessee filed an appeal before the Commissioner of Income Tax (Appeals), which was dismissed. The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) erred in dismissing the ground raised by the appellant challenging the reopening of the scrutiny assessment.
• 2. Whether the Commissioner of Income Tax (Appeals) erred in confirming the action of the Assessing Officer in making additions on different grounds than those mentioned in the reasons recorded for reopening the scrutiny assessment.
• 3. Whether the Commissioner of Income Tax (Appeals) erred in confirming the disallowance by the Assessing Officer of Rs. 11,78,126/- claimed by the appellant.
• 4. Whether the Commissioner of Income Tax (Appeals) erred in confirming the action of the Assessing Officer in not appreciating that the deduction of Rs. 6,02,341/- claimed by the appellant was under section 80P(2)(a)(1) on income earned from members legitimately allowable.
• 5. Whether the Commissioner of Income Tax (Appeals) erred in holding that co-operative banks are not a co-operative society and that interest on FD/dividend earned are not allowable deductions under section 80P(2)(d) but are taxable.
• 6. Whether the Commissioner of Income Tax (Appeals) erred in placing reliance on the judgment of Katlary Kirana (327 CTR 0128) of the jurisdictional High Court.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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