MALPUR TALUKA PRIMARY TEACHERS SAHKARI SAKH & GRAHAK SAHKARI MANDLI,MALPUR vs. THE ACIT., HIMATNAGAR CIRCLE,, HIMATNAGAR
THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD “SMC” BENCH
Before Ms. Suchitra Kamble, Judicial Member
And Shri Makarand V. Mahadeokar, Accountant Member
Malpur Taluka Primery
Teachers’ Sahkari Sakh
& Grahak Sahkari
Mandali, Malpur,
Dist: Arvalli,
Malpur-383345
PAN: AACAT9023F
(Appellant)
Vs
The ACIT,
Himatnagar
Circle,
Himatnagar
(Respondent)
Assessee by: Shri S. N. Divatia, A.R. &
Shri Samir Vora, A.R.
Revenue by: Smt. Mamta Singh, Sr-D.R.
Date of hearing
: 09-04-2025
Date of pronouncement
: 25-04-2025
आदेश/ORDER
Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 31-08-
2023 passed by National Faceless Appeal Centre (NFAC),
Delhi for assessment year 2014-15. 2. The grounds of appeal are as under:-
“1.1 The order passed u/s 250 on 31.08. 2023 by NEAC
(CIT(A), Delhi (for short NEAC) for A.Y 2014-15 confirming the disallowance u/s 80P(2)(d) of Rs.16,71,482/ in respect of interest income from Co-operative banks is wholly illegal, unlawful and against the principles of natural justice.
2 The order passed by Ld. AO is wholly illegal and unlawful in as much as the new assessment procedure laid down u/s Assessment Year 2014-15
I.T.A No. 820/Ahd/2023
Malpur Taluka Primery Teachers’ Sahkari Sakh & Grahak Sahkari Mandali , A.Y. 2014-15
2
144B read with the National Faceless Assessment Scheme which is mandatory.
1 The Ld. NFAC has grievously erred in law and or on facts in not considering fully & properly the written submissions, recent case laws, past record and orders passed in earlier years on the issue under appeal.
1 The Ld. NFAC has grievously erred in law and or on facts in confirming the disallowance of the deduction u/s.80P(2)(d) in respect of interest income of Rs. 16,71,482/- though the same were received from cooperative society.
2 That in the facts and circumstances of the case as well as in law, the Ld. NFAC has grievously erred in confirming the disallowance of the deduction u/s.80P(2)(d) in respect of interest income of Rs. 16,71,482/-.
1 That in the facts and circumstances of the case as well as in law, the Ld AO has grievously erred in invoking section 80P(4), though the cooperative bank from which the appellant received the impugned interest income were cooperative society under the Act.
It is therefore prayed that the disallowance deduction u/s.80P of Rs. 16,71,482/- made by the AO should be deleted.”
The assessee is a co-operative society carrying out business of banking by providing credit facilities to its members. The assessee society is registered under the Co- operative Society Act within the meaning of section 2(19) of the Income Tax Act, 1961 and is eligible for deduction u/s. 80P of the Act. The assessee filed return of income on 19- 09-2014 declaring total income of Rs. nil after claiming deduction u/s. 80P of Rs. 38,89,501/- which was processed u/s. 143(1). In this case, the assessment proceedings were finalized u/s. 143(3) of the Act on 30-11-2016 and assessed the total income nil after allowing deduction u/s. 80P of Rs. 38,89,501/-. Subsequently, in this case, reasons were recorded for reopening u/s. 147 of the Act. On the basis of I.T.A No. 820/Ahd/2023 Malpur Taluka Primery Teachers’ Sahkari Sakh & Grahak Sahkari Mandali , A.Y. 2014-15 3
the same, notice u/s. 148 of the Act was issued on 29-03-
2021 and served to the assessee. Notice u/s. 142(1) of the Act was issued on 05-11-2021. No compliance was made in response to the notice u/s. 148 of the Act and 142(1) of the Act by the assessee. Again, notice u/s. 142(1) of the Act was issued on 15-12-2021 and 23-12-2021. The assessee filed written submission on 28-12-2021 and also furnished the copy of acknowledgement of return of income which was filed on 28-12-2021 declaring total income at Rs. nil. The notice u/s. 143(2) of the Act was issued to the assessee on 09-02-2021. The assessee furnished written submission in compliance to notices and stated that the assessee is a co- operative society engaged in business of providing credit facilities to its member. The assessee also gave registration no. SE 2501 which was registered with District