ASHTAVINAYAK NAGARI SAHAKARI PATH SANSTHA MARYADIT,AMRAVATI vs. INCOME TAX OFFICER-WARD 1, AMRAVATI

ITA 248/NAG/2026Status: DisposedITAT Nagpur10 September 2026AY 2013-144 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest income earned by credit cooperative societies from investments in nationalized banks, made for business purposes like liquidity and safety of funds, is part of their business income. Therefore, it is eligible for deduction under Section 80P(2)(a)(i).

What were the facts?

The assessee, a credit cooperative society, claimed deduction under Section 80P for interest income earned on fixed deposits with nationalized banks. The Assessing Officer denied this deduction, treating the interest as income from other sources.

What were the issues?

Whether interest income earned by a credit cooperative society on its deposits with nationalized banks is eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR SMC BENCH, NAGPUR

Before: SHRI MANISH BORAD

For Appellant: Shri Ratan Sharma, CA
For Respondent: Shri Abhay Shende, Sr.DR
Hearing: 30/07/2026Pronounced: 10/09/2026

This appeal by the assessee is directed against the order of Ld. ADDL/JCIT (Appeals), Panjai (for short, “CIT(A)”) dated 26.02.2026 passed u/sec. 250 of the Income Tax Act, 1961 (for short, “Act”) which is arising out of assessment order dated 08.03.2016 passed u/sec. 143(3) of the Act by the ITO, Ward-1, Amravati, for the Assessment Year (A.Y.) 2013-14. 2. Sole grievance of the assessee is against the denial of deduction u/sec. 80P(2)(a)(i) of the Act at Rs. 6,49,490/-

3.

At the outset, learned counsel for the assessee submitted that the issue raised in this appeal is squarely covered by the 2 decision of Coordinate Bench of Pune Tribunal in the case of ITO vs Dhansri Multi State Co-operative Ltd. in ITA No. 463/PUN/2024, dated 13.06.2024. 4. On t

The order continues below.

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