Union Bank Co-op. Credit Society Ltd. vs. The Dy.CIT

Parties Involved

Facts Summary

The assessee, Union Bank Co-op. Credit Society Ltd., filed its return of income for the assessment years 2018-19 and 2020-21, which were selected for scrutiny. The Assessing Officer disallowed deductions claimed by the assessee under sections 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act, 1961, adding back interest income of Rs.14,62,802 for A.Y. 2018-19 and Rs.10,69,772 for A.Y. 2020-21. The assessee appealed against the order of the Commissioner of Income Tax (Appeals), which upheld the additions made by the Assessing Officer. The assessee argued that the interest income from fixed deposits and savings accounts with nationalized and co-operative banks should qualify for deduction under Section 80P(2)(a)(i) of the Act. The assessee also contended that the interest and dividend income earned from deposits with co-operative banks should be eligible for deduction under Section 80P(2)(d). The Tribunal concluded that interest income from fixed deposits and savings accounts with nationalized banks does not qualify for deduction under Section 80P(2)(a)(i), but interest and dividend income from co-operative banks qualifies for deduction under Section 80P(2)(d).…

Legal Issues

• 1. Disallowance of deductions under Section 80P(2)(a)(i) of the Income Tax Act, 1961.
• 2. Disallowance of deductions under Section 80P(2)(d) of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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