RADHAKRISHNA NAGARI SAHAKARI PAT SANSTHA LIMITED,MALKAPUR vs. PRINCIPAL COMMISSIONER OF INCOME-TAX, NAGPUR-1 , NAGPUR

ITA 264/NAG/2025Status: DisposedITAT Nagpur31 August 2026AY 2020-2111 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the PCIT erred in invoking revisional jurisdiction under Section 263 as the AO had conducted due enquiry and taken a conscious view. The Tribunal also found the PCIT's reasoning to treat a cooperative society as an AOP for MMR application to be legally untenable.

What were the facts?

The assessee, a cooperative credit society, claimed deduction under Section 80P(2)(a)(i). The Assessing Officer (AO) completed the assessment accepting the deduction after scrutiny. The Principal Commissioner of Income Tax (PCIT) invoked Section 263, deeming the assessment order erroneous and prejudicial to revenue, directing the AO to re-examine the deduction and potentially apply Maximum Marginal Rate (MMR) treating the society as an Association of Persons (AOP).

What were the issues?

Whether the PCIT was justified in exercising revisional powers under Section 263 when the AO had conducted adequate enquiries and taken a plausible view. Whether a cooperative society can be treated as an AOP for applying the Maximum Marginal Rate.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 80P(2)(a)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Shri Sanjeev Mutha, CA (virtual)
For Respondent: Shri Pankaj Kumar, CIT-DR
Hearing: 08.06.2026Pronounced: 31.08.2026

PER KHETTRA MOHAN ROY, AM:

This appeal filed by the assessee is directed against the order of Learned Principal Commissioner of Income Tax-1, Nagpur, (for short, “PCIT”), dated 29/03/2025 passed under section 263 of the Income Tax Act, 1961 (for short, “Act”) for the Assessment Year (AY) 2020-21. 2. The sole effective ground raised in the present appeal is that Ld.PCIT erred in invoking the revisional juri iction u/s. 263 of the Act and in setting aside the assessment order passed by the Ld. AO u/s. 143(3) of the Act, with a direction to apply the Maximum Marginal Rate of tax on the premise that assessee is an Association of Persons (AOP).

3.

Brief facts of the case are that assessee is a Cooperative

The order continues below.

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