NARSAPUR COOPERATIVE URBAN SOCIETY LIMITED,NARASAPURAM vs. THE INCOME TAX OFFICER, WARD-1, PALAKOL, PALAKOL

ITA 212/VIZ/2026Status: DisposedITAT Visakhapatnam24 July 2026AY 2020-216 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to deduction under Section 80P(2) for interest earned on its own surplus funds deposited with the bank. The addition made by the Assessing Officer was directed to be deleted.

What were the facts?

The assessee, a cooperative urban society, claimed a deduction under Section 80P for interest income received from deposits made with a bank. The Assessing Officer and CIT(A) disallowed this deduction, holding that the interest was earned on surplus funds not immediately required for business and thus taxable as other income.

What were the issues?

Whether interest income earned by a cooperative society on its surplus funds deposited with a bank is eligible for deduction under Section 80P of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI RAVISH SOOD, HON’BLE & SHRI OMKARESHWAR CHIDARA, HON’BLE

For Respondent: Shri A.P.Babu, Sr AR

PER OMKARESHWAR CHIDARA, AM: This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short “Ld.CIT(A)”] vide DIN: ITBA/NFAC/S/250/2025-26/1084006473(1) dated 23-Dec-2025 for the Assessment Year 2020-21. ITA

The order continues below.

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