HARDOI DISTRICT CANE GROWERS CO-OPERATIVE SOCIETY LIMITED,LAKHIMPUR KHERI vs. THE INCOME TAX OFFICER, RANGE-3(2), HARDOI

ITA 509/LKW/2026Status: DisposedITAT Lucknow10 September 2026AY 2018-1914 pages
AI SummaryAllowed

What were the facts?

The assessee-society claimed deduction under Section 80P on interest income. The Assessing Officer disallowed this deduction, and the Commissioner (Appeals) confirmed the disallowance. The Tribunal had previously set aside the NFAC's order due to a delay in filing the appeal.

What did the Tribunal hold?

The Tribunal followed its earlier decision in a similar case, holding that interest income arising from investments in statutory reserve funds and other funds, as per the UP Cooperative Societies Act, is attributable to the society's main activities and qualifies for deduction under Section 80P. The matter was restored to the Assessing Officer for re-computation.

What were the issues?

Whether interest income earned by a cooperative society on its investments, particularly those mandated by statute, is eligible for deduction under Section 80P of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80P(2)(a)(iii),Section 80P(2)(i),Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC BENCH, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA

For Appellant: Shri Shubham Rastogi, C.A

This appeal has been preferred by the assessee against the order dated 23.02.2026, passed by the ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi for Assessment Year 2018-19. 2.0 The brief facts of the case are that the assessee-society filed its return of income in ITR-5 on 30.10.2018, declaring income at Nil. The case was selected for scrutiny under CASS and the Assessing Officer (AO) completed the assessment at a total income of Rs.34,50,823/- by making disallowance under section 80P(2)(a)(iii) of the Act at Rs.34,50,823/-.

2.

1 Aggrieved, the assessee preferred an appeal before the NFAC. However, the NFAC, vide order dated 26.12.2023 dismissed the appeal of the assessee on account of the fact that ITA No.509/LKW/2026 there was a delay of 40

The order continues below.

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