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Facts
The appeal was filed by the assessee against an order of the CIT(A) for AY 2013-14. The appeal was initially time-barred by 225 days, which was condoned by the tribunal. The Assessing Officer had disallowed a deduction of Rs. 2,46,338/- under Section 80P(2) of the Act.
Held
The Tribunal, relying on various precedents from the Jurisdictional High Court and coordinate benches, held that the assessee is eligible for deduction under Section 80P(2) of the Act on interest received from fixed deposits held with cooperative banks.
Key Issues
Whether the assessee is eligible for deduction under Section 80P(2) on interest income from cooperative banks, and if the notice under Section 148 was correctly issued.
Sections Cited
80P(2), 148
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi vide order dated 30.05.2024 passed for A.Y. 2013-14. 2. At the outset, we observe that the appeal is time barred by 225 days. The delay of 225 days is condoned on due consideration of facts of assessee’s case and owing to causing no perceptible prejudice to other side.
The assessee has raised the following grounds of appeal: Asst.Year –2013-14 - 2– “1. Whether, on facts and in circumstances of the case and in law, Ld. CIT(A) has erred in not allowing deduction of Rs.2,46,338/- u/s 80P(2) of the act?
Whether, on facts and in circumstances of the case and in law, Ld. Assessing Officer has erred in issuing notice u/s. 148 of the act? Further, appellant craves leave to add, amend, alter or withdraw all or any ground of appeal.”
The Assessing Officer made disallowance of Rs. 2,46,338/- under Section 80P(2) of the Act on the interest earned from Cooperative Banks. The issue is no more res integra owing to judgment of the Coordinate Bench of the Ahmedabad Tribunal in the case of The Salestax Employees Co- operative Credit Society Ltd. vs. The ACIT in ITA No. 612/Ahd/2024 vide order dated 30.07.2024 and in the case of The ACIT vs. The Sardar Patel Co- operative Credit Society Ltd. in ITA No. 525&526/Ahd/2023 vide order dated 02.04.2024 as well as the decision of Hon’ble High Court of Gujarat in the case of PCIT vs. Ashwin Kumar Arban Co. Operative Society Ltd. 168 This Order pronounced in Open Court on 18/07/2025 (DR. BRR KUMAR) JUDICIAL MEMBER Ahmedabad; Dated 18/07/2025 TANMAY, Sr. PSITA No. 560/Ahd/2025 Asst.Year –2013-14 - 3–
आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant
""थ" / The Respondent. संबंिधत आयकर आयु" / Concerned CIT 3. 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad गाड" फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,
उप/सहायक पंजीकार (Dy./Asstt.