BIBHISANPUR SAMABAY KRISHI UNNAYAN SAMITY LTD.,KOLKATA vs. I.T.O., WARD - 27(4), HALDIA/ WBG-W-176(3), HALDIA

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ITA 1021/KOL/2024Status: DisposedITAT Kolkata04 August 2025AY 2020-2021Bench: SHRI SONJOY SARMA (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)30 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that interest income earned by a cooperative society on surplus funds invested in banks, which are not required for its primary business of providing credit facilities to its members, is not eligible for deduction under Section 80P. This is because such income is considered 'other income' and not 'profits and gains of business' attributable to the specified activities.

What were the facts?

The assessee, a cooperative society, claimed a deduction of Rs. 32,79,394/- under Section 80P of the Income Tax Act. The Assessing Officer disallowed this deduction, holding that the interest income earned on surplus funds invested in banks was not eligible for deduction as it was income from 'other sources' and not attributable to the society's business of providing credit facilities to its members.

What were the issues?

Whether interest income earned by a cooperative society on surplus funds invested in banks is eligible for deduction under Section 80P of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P,Section 56

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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

For Appellant: Adv. and Saikat Ghosal, Adv

order

: 04-August-2025 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

The present appeal filed by the assessee pertaining to the AY 2020-21 is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (in short, the 'Act') dated 05.03.2024 arising out of the assessment order framed u/s 143(3)/144B of the Act dated 12.09.2022.

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