UJJAIN SAHAKARI DUGDH SANGH MARYADIT,UJJAIN vs. INCOME TAX OFFICER 2 (1) UJJAIN, UJJAIN

ITA 858/IND/2025Status: DisposedITAT Indore24 June 2026AY 2013-144 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's total income would be NIL even after considering the adhoc disallowance, due to the deduction available under Section 80P(2)(d) for interest earned from cooperative banks. Therefore, the disallowance was deleted.

What were the facts?

The assessee, a cooperative society, had certain expenses for which bills/vouchers were not provided to the AO. The AO made an adhoc disallowance, which was reduced by the CIT(A). The assessee appealed to the ITAT.

What were the issues?

Whether the adhoc disallowance of expenses was justified when the assessee was eligible for a deduction under Section 80P(2)(d) that would render the total income NIL.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI Dr. MANISH BORAD, ACCOUNTANT & MEMBER SHRI PARESH M. JOSHI

For Appellant: Ms. Nupur Laddha &
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 22.6.2026Pronounced: 24.6.2026

PER Dr. MANISH BORAD, A.M: This appeal of Assessee pertaining to A.Y. 2013-14 is directed against the order of Ld. NFAC, Delhi dated 14.08.2025 which is arising out of the order u/s 143(3) of the Income Tax Act 1961 (hereinafter called as the ‘Act’) framed on 30.03.2016 by ITO-2(1), Ujjain.

ITA No. 858 of 2025

2.

The only issue involved in the present appeal raised is against adhoc disallowance of expenses @10% at Rs.1,58,192/-.

3.

Facts, in brief, are that the assessee is a cooperative society engaged in the business of selling milk and milk products. Return of income for AY 2013-14 filed on 30.9.2013 declaring NIL income, picked up for scrutin

The order continues below.

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