Vivekanand Shikshakanchi Sahkari Patsanstha Maryadit Kada vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Vivekanand Shikshakanchi Sahkari Patsanstha Maryadit Kada, is an Employees Co-operative Credit society registered under the Maharashtra State Co-operative Societies Act, 1960. For the Assessment Year 2020-21, the assessee filed an income return reporting a gross total income of Rs.1,43,91,530/- and claimed a total income of Rs. Nil after deducting Rs.1,43,91,530/- under section 80P of the Income Tax Act. The Assessing Officer (AO) disallowed the assessee's claim for deduction on interest income of Rs.46,79,216/- earned from deposits made with Maharashtra Gramin Bank. The assessee appealed this decision to the Commissioner of Income Tax (Appeals), who confirmed the AO's decision. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), Pune Bench.…

Legal Issues

• 1. Whether the interest income of Rs.46,79,216/- received on deposits kept with banks is income from other sources and taxed, thereby denying the deduction u/s 80P(2)(a)(i) of the IT Act.
• 2. Whether the Interest u/s. 234B and 234 A, of the IT Act should be charged even though the appellant society is not liable to pay the Advance Tax as per provisions of section 208 of the IT Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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