ITO, PALGHAR vs. JANKALYAN NAGARI SAHAKARI PATSANSTHA MARYA JAWHAR, JAWHAR

The grievance of the revenue reads as under: “1. On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that the interest Income of the assessee society out of its "investment' with other co-operative banks is not eligible for deduction u/s. 80P(2)(a) as this interest income earned by the assessee society from Its investments with co- operative banks do not constitute operational Income or business income of the assessee society and should be taxed under the head "Income from other sources".

On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that the interest income earned by the assessee society cannot be held eligible for deduction u/s. 80P(2) (d) of the Act either as the section 80P(2)(d) specifies that the interest income earned by the co-operative societies from its investments with any other co-operative society would be eligible for deduction under the said section.

On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not allowing the A.O. to examine the additional”

It is pertinent to understand the assessment order dated 13.12.2022 framed u/s 144 r.w.s. 144B of the Income-tax Act, 1961 [hereinafter referred to as “Act”]. The returned income of the assessee was assessed at Rs. 2,79,82,590/- after making two additions (i) disallowance of deduction u/s 80P of the Act - Rs. 38,35,590/- (ii) addition u/s 68 in respect of unexplained credit – Rs. 2,41,46,999/-. 4. When the additions were agitated before the CIT(A), the CIT(A), vide order dated 12.04.2025, deleted both the additions. 5. A perusal of the grounds taken in appeal before us shows that the revenue has contested only the deletion of Rs. 38,35,590/-, which means that the deletion of Rs. 2,41,46,999/- has attained finality.

The tax on Rs. 38,35,590/- would be less than Rs. 60,00,000/-. Therefore, this appeal by the revenue has to be dismissed in light of the CBDT circular No. 09 of 2024 dated 17.09.2024. 7. In the result, the appeal of the revenue is dismissed.