CO-OPERATIVE CANE DEVELOPMENT UNION LIMITED,LAKHIMPUR KHERI vs. ASSESSMENT UNIT/ACIT, SITAPUR

ITA 916/LKW/2025Status: DisposedITAT Lucknow25 May 2026AY 2022-2313 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that interest income from investments in banks, including FDRs and savings accounts, is not eligible for deduction under Section 80P as it is not derived from the primary business of providing credit facilities or assistance to cane growers. The Tribunal also addressed the issue of the validity of the notice issued by the Assessment Unit.

What were the facts?

The assessee, a Cooperative Cane Development Union, claimed a deduction under Section 80P on its entire business income. The Assessing Officer noted discrepancies between reported business income, income from other sources, and interest received from investments. The assessee argued that interest income from bank deposits was attributable to its core business activities.

What were the issues?

Whether interest income earned by a cooperative society on its investments with banks is eligible for deduction under Section 80P, and the validity of a notice issued by the Assessment Unit.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(2),Section 142(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘B’ BENCH, LUCKNOW

Before: SH. SUDHANSHU SRIVASTAVA & SH. NIKHIL CHOUDHARY

Hearing: 03.03.2026Pronounced: 25.05.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the orders of the ld. CIT(A), NFAC under section 250 of the Income Tax Act, 1961 on 31.10.2025, wherein the ld. CIT(A) has dismissed the appeals of the assessee against the orders of the Assessing Officer passed under section 143(3), for the A.Y. 2022-23, on 6.03.2024. The grounds of appeal are as under:- “(1) That Notice u/s 143(2) of I. T. Act has been issued by Assessment Unit.

Income Tax Department, dated 02-06-2023 who have no Juri iction to issue the same in view of CBDT Circular / Notification dated 29.03.2022 wherein it has

The order continues below.

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