BASAVAN BAGEWADI TALUKA PRIMARY TEACHERS CO-OPERATIVE SOCIETY LIMITED ,BIJAPUR vs. INCOME TAX OFFICER, WARD-1 & TPS, , BIJAPUR
What did the Tribunal hold?
The Tribunal held that the interest income derived from statutory deposits, which were mandated by the Karnataka Co-operative Society Act and not freely available for the society's business operations, was attributable to the business income. Therefore, the assessee is entitled to deduction under Section 80P(2)(a)(i) of the Act.
What were the facts?
The assessee, a credit co-operative society, claimed a deduction of Rs. 96,40,390/- under Section 80P(2)(a)(i) for interest earned on deposits made with cooperative and district cooperative banks. The AO disallowed this deduction, treating the interest as income from other sources. The CIT(A)/NFAC upheld the AO's decision.
What were the issues?
Whether interest earned by a co-operative society on statutory deposits with banks is to be treated as business income eligible for deduction under Section 80P(2)(a)(i) or income from other sources.
Which sections of the Income-tax Act were involved?
Section 250,Section 143(2),Section 142(1),Section 143(3),Section 144B,Section 80P(2)(a)(i),Section 80P(2)(d),Section 57(2),Section 58,Section 57
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Cases cited in this judgment(2)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Pr. CIT v. Totagars1,074 citing395 ITR 611 · 2017 · HC
- Mavilayi Service Co-operative Bank Ltd. v. CIT999 citing431 ITR 1 · 2021 · SC
Income Tax Appellate Tribunal, “A’’ BENCH: BANGALORE
Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY
PER KESHAV DUBEY, JUDICIAL MEMBER:
These appeals at the instance of the assessee are directed against the orders of ld. CIT(A)/NFAC both orders dated 23.3.2024 vide DIN & Order Nos. ITBA/NFAC/S/250/2023- 24/1063284867(1) and ITBA/NFAC/S/250/ 2023- 24/1063285037(1) for the assessment years 2018-19 & 2020-21 respectively passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”).
First, we take ITA No.869/Bang/2024 for the AY 2020-21 as the lead case. The grounds of appeal as raised by the assessee in this appeal are
The order continues below.
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