YEDAPADAVU VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA,MANGALORE vs. INCOME TAX OFFICER, MANGALORE

ITA 1432/BANG/2026Status: DisposedITAT Bangalore23 September 2026AY 2017-1810 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the interest income earned by the co-operative society was attributable to its business of providing banking and credit facilities to its members and was therefore deductible under Section 80P(2)(a)(i). Disallowances of provisions were considered tax-neutral.

What were the facts?

The assessee, a co-operative society, claimed deduction under Section 80P(2)(a)(i) for income earned from providing credit facilities to its members and also from bank interest. The Assessing Officer denied the deduction, treating bank interest as income from other sources, and disallowed provisions for interest and non-performing assets.

What were the issues?

Whether interest income earned by a co-operative society from bank deposits is eligible for deduction under Section 80P(2)(a)(i) as business income, and whether disallowances of provisions are justified.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 56,Section 80P(2)(d),Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

PER SHRI PRASHANT MAHARISHI, VICE PRESIDENT

01.

This appeal, relating to assessment year 2017–18, challenges the order dated 30 January 2026 passed by the Joint Commissioner of Income Tax (Appeals)–9, Delhi [the learned CIT(A)]. By that order, the learned CIT(A) dismissed the assessee’s appeal against the assessment order dated 11 December 2019, passed b

The order continues below.

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