DEPARTMENT OF IRRIGATION COOPERATIVE THRIFT & CREDIT SOCIETY LIMITED,DELHI vs. COMMISSIONER APPEALS NATIONAL FACELESS APPEAL CENTRE, DELHI

Heard both the parties at length. Case file perused.

It emerges during the course of hearing with the able assistance coming from both the parties that the learned lower authorities have disallowed/added the assessee’s deduction claim amounting to Rs.25,67,209/- in the CPC’s section 143(1) processing dated 12.07.2019 and upheld in the lower appellate discussion for the precise reason that it had raised a claim of Department of Irrigation Cooperative Thrift & Credit Society Ltd.

I have given my thoughtful consideration to the assessee’s pleadings all along and the Revenue’s foregoing vehement contentions. There is no dispute between the parties that the impugned sum represents assessee’s interest income derived from both it’s members as well as alleged parking of surplus funds in FDRs etc. Be that as it may, the fact remains that section 80P(2)(f) does not admittedly apply in it’s case once it is not engaged in the corresponding specified activities. It is thus an instance of wrong “ticking” of the prescribed column in the return committed at the assessee’s behest. It is thus deemed appropriate in the larger interest of justice to direct the learned assessing authority to examine the assessee’s section 80P deduction claim afresh, within three effective opportunities subject to a rider that the assessee shall plead and prove the case at his own risk and responsibility, in consequential proceedings. Ordered accordingly. Department of Irrigation Cooperative Thrift & Credit Society Ltd.