MAHATMA PHULE NAGARI SAHAKARI PATSANSTHA MARYADIT,AHILYANAGAR vs. ITO WARD-1, AHILYANAGAR

Assessment Year : 2020-21 Mahatma Phule Nagari Vs. ITO, Ward-1, Sahakari Patsanstha Ahilyanagar. Maryadit, At Post Bhingar, Nagar – Pathardi Road, Dist. Ahilyanagar- 414002. PAN : AAAAM3703B Appellant Respondent Assessee by : Shri Prasad S. Bhandari Revenue by : Shri Ramnath P. Murkunde Date of hearing : 05.08.2025 Date of pronouncement : 12.09.2025 आदेश / ORDER

PER VINAY BHAMORE, JM:

1. On the facts and in the prevailing circumstances of the case and in Law, Respected CIT(A)-NFAC erred confirming the addition made by the Ld. Assessing Officer at Rs.82,64,267/- without appreciating the fact that the assessee co-operative society is eligible to claim deduction under section 80P of the Act. Hence, the addition made of Rs. 82,64,267/- may please be deleted.

2. On the facts and in the prevailing circumstances of the case and in Law. Respected CIT(A)-NFAC erred confirming the addition made by the Ld. Assessing Officer at Rs. 82,64,267/- without appreciating the submission made by the assessee supported by the covered case laws of Hon'ble Pune ITAT. Hence, the addition made of Rs. 82,64,267/- may please be deleted.

3. Without prejudice to the above and on the facts and in the prevailing circumstances of the case and in Law. Respected CIT(A)-NFAC erred in not allowing deduction u/s 80P(2)(d) of the ITA, 1961. While arriving at the above conclusion, the Resp. CIT(A) held that interest income from Co-operative Bank is not covered in this section. Hence, the addition made of Rs.82,64,267/- may please be deleted.

4. The Appellate craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.”

4. Facts of the case, in brief, are that the assessee is a cooperative credit society engaged in the business of providing credit facilities to its members & also accepting deposits from them. The assessee has filed its return of income on 15.02.2021 declaring Nil income after claiming deduction of Rs.82,64,267/- u/s 80P(2)(a)(i) of the IT Act. The case was selected for complete scrutiny. After considering the reply of the assessee, the Assessing Officer completed the assessment u/s 143(3) r.w.s. 144B of the IT Act by Rs.82,64,270/- as against the income returned by the assessee at Rs.Nil. The above assessed income includes addition of Rs.82,64,267/- on account of disallowance of deduction u/s 80P of the IT Act.

5. After considering the reply of the assessee, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee by observing that the cooperative banks are not entitled to claim deduction u/s 80P(2)(d) of the IT Act since section 80P(4) excludes cooperative banks, & therefore the interest income earned by the assessee credit cooperative society from cooperative banks is also not deductible u/s 80P(2)(d) of the IT Act.