COOPERATIVE CANE DEVELOPMENT UNION LTD BALRAMPUR,BALRAMPUR vs. ITO GONDA NEW, GONDA

ITA 737/LKW/2025Status: DisposedITAT Lucknow30 June 2026AY 2018-1914 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that interest income arising from investments made in statutory reserve funds, as per the U.P. Cooperative Societies Act, is attributable to the main activities of the society and thus eligible for deduction under Section 80P. The matter was restored to the Assessing Officer for re-computation.

What were the facts?

The assessee, a cooperative society, claimed deduction under Section 80P on commission income and interest earned from bank deposits. The Assessing Officer disallowed the deduction on interest income, relying on the Totgars Cooperative Sale Society Ltd. case. The CIT(A) upheld the disallowance.

What were the issues?

Whether interest income earned by a cooperative society on bank deposits made for statutory reserve funds is eligible for deduction under Section 80P, and whether the Totgars Cooperative Sale Society Ltd. decision is distinguishable.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(3),Section 56,Section 194H

AI-generated summary — verify with the full judgment below

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

Hearing: 05.05.2026Pronounced: 30.06.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the orders of the ld. CIT(A), NFAC dated 25.08.2025, wherein the ld. CIT(A) has dismissed the appeal of the assessee against the order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 for the A.Y. 2018-19 that was passed on 9.04.2021. The grounds of appeal are as under: - “1. That the CIT (Appeal) NFAC Delhi has committed manifest error of law by rejecting the first appeal of the appellant without appreciating facts and circumstances of the case of the appellant. 2.That the appeal filed by the assessee against the order of CIT (Appeal) NFAC Delhi dated 25-08-2025 in which the disallowances made by the LD AO in respect

The order continues below.

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