ASHATVINAYAK NAGRI SAHAKARI PATSANSTHA MARYADIT INDAPUR,PUNE vs. ITO WD-14(5), PUNE

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ITA 229/PUN/2026Status: DisposedITAT Pune26 May 2026AY 2018-194 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowed income, including form fees, advocate fees, and recovery charges, was attributable to the assessee's core business of providing credit facilities. Therefore, it was eligible for deduction under Section 80P(2)(a).

What were the facts?

The assessee, a cooperative credit society, claimed deduction under Section 80P(2)(a) for various income sources. The Assessing Officer disallowed the entire claim, and the CIT(A) allowed deduction only on interest earned, disallowing other income like form fees and advocate fees.

What were the issues?

Whether income derived from sources like form fees, advocate fees, and recovery charges is eligible for deduction under Section 80P(2)(a) as income attributable to the business of a cooperative credit society.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)

AI-generated summary — verify with the full judgment below

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

Before: SHRI Dr. DIPAK P. RIPOTE & SHRI VINAY BHAMORE

For Appellant: Shri Pramod S. Shingte
For Respondent: Ms. Neha Thakur

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 2018-19 on 22-09-2025, emanating from the Assessment Order u/s 143(3) r.w.s. 263 r.w.s. 144B of the Act, dated 18-03-2024.

2.

Grounds of appeal raised by assessee are as under:

ITA No. 229/PUN/2026

3.

Ld.AR submitted that assessee is a cooperative credit society duly registered under Maharashtra Cooperative Societies Act. Assessee is in the business of providing credit facilities to its members. In the Assessment Order AO disallowed assessee’s claim for deduction u/s 80P(2)(a) of the Act. Assessee filed appeal before Ld. CIT(A). Ld. CIT(A) allowed assessee deduction u/s 80P(2) for interest earned. But didn’t allow on Form fees, Advocate Fees, Nominal member fees, Agent commission recovered, and recovery charges. Ld.AR further submitted that these incomes are part of business income of the assessee and are attributable to the business of the assessee. Ld.AR submitted that it is eligible for deduction u/s 80P(2)(a) of the Act.

4.

Ld. DR relied on the order of CIT(A) and AO.

5.

Findings and Analysis:

We have heard both the parties and perused the records. In this case, Ld.CIT(A) has allowed assessee’s claim for deduction u/s. 80P of the Act of Rs. 45,54,698/-. However, Ld.CIT(A) has not allowed the claim of the assessee for deduction u/s. 80P(2) of the Act for Rs. 11,98,849/-. We have gone through the submission of the assessee, which was filed before the AO as well as before the Ld.CIT(A). The amount of Rs. 11,98,849/- is attributable to the business activity of the assessee, as the assessee has received these amounts on account of sale of loan forms. Similar or the other amounts mentioned in the grounds of appeal.

ITA No. 229/PUN/2026

All these incomes are attributable to business of the assessee of providing credit facility. Section 80P(2)(a) of the Act allows deduction on the profits and gains of business attributable to any of the activities mention in Section 80P(2) of the Act. The income mentioned in the grounds of appeal is attributable to business of the assessee. Therefore, it is eligible for deduction u/s. 80P(2)(a) of the Act. Accordingly, we direct the AO to allow deduction u/s. 80P(2)(a) of the Act.

6.

There was a delay of 57 days in filing appeal before this Tribunal. We have perused the condonation petition filed by the assessee and observed that there was sufficient and reasonable cause for the delay. Substantial justice is more important than procedural delays. No assessee is going to gain anything by delaying the appeal. Accordingly, we condone the delay.

7.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open Court on 26th May, 2026

Sd/- Sd/- (VINAY BHAMORE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/Pune; दिन ांक/Dated : 26-05-2026 TNMM

ITA No. 229/PUN/2026

आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: अपील र्थी / The Appellant 1. प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ 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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