The Vainganga Nagari Sahakari Pat Sanstha Ltd. v/s Income Tax Officer

Parties Involved

Facts Summary

The assessee, The Vainganga Nagari Sahakari Pat Sanstha Ltd., is a Credit Co-operative Society registered under the Maharashtra State Co-operative Societies Act, 1960. It provides various credit facilities and related services to its members. The assessee filed its return of income on 16/11/2020, declaring nil income. The Assessing Officer disallowed a deduction of Rs. 31,83,509 made by the assessee under section 80P of the Income Tax Act, 1961, stating that the interest income from deposits in banks is taxable as income from other sources and not eligible for deduction under section 80P. The assessee appealed against this order, arguing that the interest income should qualify for deduction under section 80P.…

Legal Issues

• 1. Whether the interest income received by the assessee is eligible for deduction under section 80P of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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