SESSOON DOCK MATSYA GANGA CO OP CREDIT SOCIETY LTD ,MUMBAI vs. ITO WARD 26(2)(1), MUMBAI

ITA 7159/MUM/2025Status: DisposedITAT Mumbai08 June 2026AY 2018-197 pages
AI SummaryAllowed

What were the facts?

The assessee, a co-operative society, claimed a deduction under Section 80P(2)(a)(i). An addition of Rs. 1,36,503/- was made under Section 40A(9) due to a discrepancy in reporting the disallowance in the Tax Audit Report and the return of income. The assessee argued this was a double disallowance or, alternatively, that the enhanced profit should also be eligible for Section 80P deduction.

What did the Tribunal hold?

The Tribunal found that the disallowance under Section 40A(9) was inadvertently reported at the wrong place in the ITR and that the revenue had not brought any factual contradiction. The Tribunal also held that, as per CBDT Circular No. 37/2016, any enhanced profit due to disallowances is eligible for deduction under Chapter VI-A.

What were the issues?

Whether a disallowance under Section 40A(9) made due to reporting discrepancy constitutes a double disallowance, and whether enhanced profits due to such disallowances are eligible for deduction under Section 80P.

Which sections of the Income-tax Act were involved?

Section 80P,Section 40A(9),Section 143(1),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY, JM & SHRI ARUN KHODPIA, AM

Hearing: 08.06.2026

Per Arun Khodpia, AM: This appeal is preferred by the assessee, directed against the order of the Commissioner of Income Tax Appeals, National Faceless Appeal Centre (NFAC), Delhi [in short, “the Ld. CIT(A)”], dated 10.09.2025 for the assessment year 2018-19, arises from the assessment order under section 143(3) of the Income Tax Act, 1961 [in short, “the Act”] dated 05.02.2021, passed by Assessing Officer/National e-Assessment Centre, Delhi [in short, “the Ld.AO”].

The grounds of appeal raised by the assessee, are as under: Sassoon Dock Matsya Ganga Co-op Credit Society Lt

The order continues below.

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