SINDHU CREDIT SOUHARDHA SAHAKARI NIYAMITA SINDHANUR,SINDHANUR vs. THE INCOME TAX OFFICER- WARD I, RAICHUR

ITA 1033/BANG/2026Status: DisposedITAT Bangalore16 September 2026AY 2018-1911 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest income earned from deposits in scheduled banks and cooperative banks, and interest on staff loans, are attributable to the business of the assessee and eligible for deduction under Section 80P(2)(a)(i). The reliance on the Totagars Cooperative Society case by the AO was deemed not applicable.

What were the facts?

The assessee, a Souharda Sahakari society, claimed deduction under Section 80P for interest income earned from deposits in scheduled banks and cooperative banks, as well as interest on staff loans. The Assessing Officer disallowed this deduction, treating the interest as income from other sources.

What were the issues?

Whether interest income from deposits in banks and cooperative banks, and interest on staff loans, are eligible for deduction under Section 80P of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P,Section 56

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 SANDEEP SINGH KARHAIL, JUDICIAL MEMBER:

The assessee has filed the present appeal against the impugned order dated 19/12/2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2018-19. ITA 103

The order continues below.

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