DHANASHRI MULTISTATE COOPERATIVE CREDIT SOCIETY LTD,MANGALVEDHE vs. ITO WARD 1 PANDHARPUR, PANDHARPUR

The captioned appeal at the instance of assessee pertaining to A.Y. 2020-21 is directed against the order dated 14.12.2023 of National Faceless Appeal Centre (NFAC) Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 20.09.2022 passed u/s.143(3) r.w.s144B of the Act.

This is a recalled matter. The Tribunal order dated 28.05.2024 has been recalled vide M.A.No.70/PUN/2024 order dated 18.03.2025.

At the outset, Ld. Counsel for the assessee submitted that the issue involved is regarding non-allowability of claim of deduction u/s.80P(2)(a)(i) and 80P(2)(d) of the Act and that Dhanashri Multi State Cooperative Credit Society Ltd ld.CIT(A) has already directed the ld. Assessing Officer to examine the claim of deduction u/s.80P(2)(a)(i) of the Act. He therefore prayed that the matter may please be restored to the file of Ld. Jurisdictional Assessing Officer for necessary verification to which ld. Departmental Representative did not object.

We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a Cooperative Society and filed its return of income for A.Y. 2020- 21 on 18.12.2020 declaring income of Rs.2,580/-. After the case being selected for scrutiny followed by validly serving statutory notices, assessment u/s.143(3) r.w.s.144B of the Act was framed assessing income at Rs.4,35,10,388/-, ld. Assessing Officer confirmed the action of CPC in the intimation u/s.143(1)(a) disallowing deduction u/s.80P of the Act at Rs.4,35,07,808/-. We further observe that aggrieved with the order of Assessing Officer assessee filed appeal before ld.CIT(A) and filed the complete details about its valid claim of deduction u/s.80P(2)(a)(i) and u/s.80P(2)(d) of the Act. We observe that ld.CIT(A) has accepted the assessee’s contention but for necessary verification has remitted the issue to the file of ld. JAO. Before us, Ld. Counsel for the assessee has requested to set aside the issue to the file of Ld. JAO for necessary verification.

Under these given facts and circumstances, we fail to find any infirmity in the order of ld.CIT(A) and observed that as assessee is eligible for deduction u/s.80P(2)(d) of the Act for the interest income earned on the investments with cooperative banks and is also eligible for deduction u/s.80P(2)(a)(i) of the Dhanashri Multi State Cooperative Credit Society Ltd Act which has been dealt in detail by ld.CIT(A) in the impugned order. However, for necessary verification of the quantum of deduction u/s.80P(2)(a)(i) and u/s.80P(2)(d) of the Act, the issue is remitted back to the file of ld. JAO to examine the details and pass order in accordance with law. Ground of appeal raised by the assessee are allowed for statistical purposes.

In the result, appeal of the assesse is allowed for statistical purposes.