WANGDARI AGRICULTURAL AND CREDIT CO-OP SOCIETY LIMITED,AHMEDNAGAR vs. THE ITO WARD 2, AHMEDNAGAR

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ITA 448/PUN/2026Status: DisposedITAT Pune15 July 2026AY 2021-223 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to furnish a valid registration certificate in its name, which is a prerequisite for claiming deduction under Section 80P. Consequently, the deduction was disallowed.

What were the facts?

The assessee, an agricultural credit co-operative society, claimed a deduction of Rs. 1,22,45,586/- under Section 80P(2)(a)(i) for AY 2021-22. The Assessing Officer disallowed this claim for lack of a valid registration certificate in the society's name.

What were the issues?

Whether the assessee society was eligible for deduction under Section 80P without providing a valid registration certificate in its name.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(3),Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: MS. ASTHA CHANDRA & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Paras Munot
For Respondent: Ms. Bhavya I.V., Jt. CIT

आदेश /ORDER

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2021-22 on 30.12.2025, emanating from the Assessment Order u/s 143(3), r.w.s. 144B of the Act, dated 27.12.2022.

Findings and analysis:

2.

The assessee filed return of income for AY 2021-22 on 07.02.2022 declaring total income of Rs.Nil after claiming deduction u/s 80P(2)(a)(i) of the Act of Rs.1,22,45,586/-. During the scrutiny proceedings, the Assessing Officer (AO) observed that the assessee had not filed copy of valid Registration Certificate in the name of the assessee society. Therefore, the AO disallowed assessee’s claim. The relevant paragraph of the assessment order is reproduced here as under : “4.6 Conclusion drawn:

ITA No.448/PUN/2026

From the above discussion various documents such as Registration Certificate, P&L A/c., and Bye-laws, it is clear that the that the assessee has not furnished any valid Registration Certificate issued in Society's name on the basis of which claim of deduction u/s.80P of the Act can be justified and therefore the activities are treated as business activities. Therefore the claim of deduction of Rs.1,22,45,586 u/s.80P(2)(a)(i) is hereby disallowed treating the same as income from business income to the tune of Rs 82,09,928/- and Income from other sources to the tune of Rs.40,35,658 (Interest income received from bank Rs.8,72,393 and NPA Rs.31,63,265/-).”

2.1 Aggrieved by the assessment order, the assessee file an appeal before the Ld. CIT(A). The Ld. CIT(A) after reproducing all the facts held as under : “6.2 Ground No. 1: This ground relates to addition of Rs. 1,22,45,586/- on account of disallowance of deduction u/s 80P of the I.T. Act made by the AO. 6.2.1 The main reason for disallowance of deduction u/s 80P by the Assessing Office is that the assessee society failed to furnish a valid registration certificate in name of the society. Before me, the assessee submitted registration deed, certificate of Assistant Registrar of cooperative society Shrigonda and copy of the by laws of the society. These documents were produced at the time of assessment proceedings as per the assessee. Moreover, this information about the assessee society being same as the society registered under Bombay Cooperative Society Act, 1925 is a matter of record and in case of any doubt/dispute the AO can make independent enquiries as to the documents being furnished being valid or correct. Therefore, the AO is directed to verify from record that the assessee society claim of being registered under Bombay Cooperative Society Act, 1925 is correct and allow claim of eligibility under section 80P if the society is registered as claimed, as no other reason for the assessee society being ineligible u/s 80P emanates from the assessment order. Therefore, the appeal of the assessee is allowed for statistical purposes.”

2.2 Thus, the Ld. CIT(A) had allowed the assessee’s appeal for statistical purposes, however, the assessee filed an appeal against the order of the Ld. CIT(A) before this Tribunal.

3.

In fact, there is no prejudice caused to the assessee by the order of the Ld. CIT(A) as the Ld. CIT(A) had merely directed the AO to verify the registration. Admittedly, there was name discrepancy in the certificate filed by the assessee before the AO. The assessee had filed copy of the certificate at page No. 11 of the paper book wherein, the name mentioned is Wangdari Agricultural Co-operative Thereft & Credit Society. Thus, the certificate was having different name as compare to the name mentioned in the return of income. Before the Ld. CIT(A), the assessee filed letter dated

ITA No.448/PUN/2026

24.11.2022 issued by the Assistant Registrar, Co-operative Societies stating that Wangdari Agricultural And Credit Co-op Society Limited is registered with No. 8307/1941, dated 28.08.1941. In these facts, we direct the AO to verify the certificate filed by the assessee dated 24.11.2022, and if found in order allow the assessee’s deduction u/s 80P(2)(a)(i) of the Act. Accordingly, the appeal of the assessee is allowed for statistical purpose.

4.

In the result, the appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open Court on 15th July, 2026

Sd/- Sd/- (MS. ASTHA CHANDRA) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/Pune; दिन ांक/Dated : 15-07-2026 Ravi Kumar Digitally signed by Ravi Kumar Ravi Kumar Date: 2026.07.15 14:19:41 +05'30' आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, ‘B’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण, पुणे/ITAT, Pune

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