S R P JUTHA 13 RAJKOT VI AND GR S MA,RAJKOT vs. ITO WD 1(2)(1) RAJKOT, RAJKOT

ITA 951/RJT/2025Status: DisposedITAT Rajkot09 October 2026AY 2017-1815 pages
AI SummaryAllowed

What were the facts?

The assessee, SRP Group13, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 21.11.2025. This order confirmed an addition of Rs. 4,37,795/- made by the Assessing Officer (AO) under section 147 of the Income Tax Act, 1961. The addition pertained to a deduction claimed by the assessee under section 80P(2)(d) for interest income received from Rajkot District Co-operative Bank Ltd. The AO's assessment order was dated 31.01.2025. The assessee contended that the interest income was from a co-operative society to another co-operative society and was clearly allowable. The appeal was filed for Assessment Year 2017-18.

What did the Tribunal hold?

The Tribunal held that the issue was squarely covered in favour of the assessee by the decision of the Coordinate Bench in the case of Shree Avadh Nagarik Sahakari Mandali Ltd. (supra). The Tribunal noted that the Assessing Officer had made sufficient inquiry during the assessment proceedings by issuing a notice under section 142(1) and examining the details, documents, and explanations submitted by the assessee. The AO had taken a plausible view, which was sustainable in law. The Tribunal also referred to various other decisions of Coordinate Benches of ITAT and other High Courts that upheld the view that interest received from Co-operative Banks is allowable deduction under section 80P(2)(d) of the Act. The Tribunal found that the judgment of the Hon'ble Supreme Court in the case of Tatgars Society Ltd. (supra) did not apply as it was in the context of Section 80P(2)(a)(i). The Tribunal concluded that the order of the Assessing Officer was not erroneous or prejudicial to the interest of the revenue, and therefore, the revisional jurisdiction invoked by the Principal CIT under section 263 was quashed. Consequently, the addition made by the Assessing Officer was deleted. The appeal filed by the assessee was allowed.

What were the issues?

1. Whether the addition of Rs. 4,37,795/- made by the Assessing Officer, being the deduction claimed by the assessee under section 80P(2)(d) of the Income Tax Act, 1961, for interest income received from Rajkot District Co-operative Bank Ltd., is valid? Assessee's Contentions: - The interest income received from Rajkot District Co-operative Bank Ltd. is clearly allowable as a deduction under section 80P(2)(d) because it is interest received by a co-operative society from another co-operative society. - The issue is squarely covered in favour of the assessee by the decision of the Coordinate Bench of ITAT Rajkot in the case of Shree Avadh Nagarik Sahakari Mandali Ltd. v. PCIT Rajkot (ITA No. 216/Rjt/2023) for Assessment Year 2018-19, dated 31.07.2024. - The AO had examined the issue during assessment proceedings and taken a plausible view. Revenue's Contentions: - The learned Departmental Representative relied upon the orders of the authorities below.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d),Section 147,Section 250,Section 142(1),Section 143(3),Section 263,Section 254(2),Section 194A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

Hearing: 30/07/2026Pronounced: 09/10/2026

Per, Dr. Arjun Lal Saini, A.M Captioned appeal filed by assessee, pertaining to Assessment Year 2017- 18, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 21.11.2025, which in turn arises out of an assessment order passed by Assessing Officer u/s. 147 of the Act, on 31/01/2025 .

2.

The Grounds of appeal raised by the ass

The order continues below.

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