THE JYOTI CO-OPERATIVE NON AGRICULTURAL THRIFT & CREDIT SOCIETY LTD.,SIRMOUR vs. ITO, WARD, NAHAN

ITA 161/CHANDI/2023Status: DisposedITAT Chandigarh12 February 2025AY 2012-13Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that interest earned on surplus funds parked in fixed deposits with scheduled banks is not attributable to the business of providing credit facilities to members. Therefore, it is not eligible for deduction under Section 80P(2)(a)(i).

What were the facts?

The assessee, a cooperative society, claimed deduction under Section 80P(2)(a)(i) on interest earned from scheduled banks. The Assessing Officer (AO) disallowed this deduction, treating the interest as income from other sources. The CIT(A) upheld the AO's order.

What were the issues?

Whether interest income earned by a cooperative society from surplus funds invested in fixed deposits with scheduled banks is eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i)

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Cases cited in this judgment(14)Show list

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Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"डीगढ़ "यायपीठ “एस.एम.सी” , च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH HEARING THROUGH: VIRTUAL MODE "ी िव"म "सह यादव, लेखा सद"य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No.160, 161 & 162/ Chd/2023 िनधा"रण वष" / Assessment Year : 2017-18, 2012-13 & 2013-14 The Jyoti Co-operative Non बनाम The ITO Agricultural Thrift & Credit Society Ward-Nahan, Sirmour H.P Ltd. Sirmour, Solan, HP-173025 "थायी लेखा सं./PAN NO: AAABT1453G अपीलाथ"/Appellant ""यथ"/Respondent िनधा"रती क" ओर से/Assessee by : Shri Vishal Mohan, Sr. Advocate with Shri Parveen Sharma, Advocate राज"व क" ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr. DR सुनवाई क" तारीख/Date of Hearing : 07/01/2025 उदघोषणा क" तारीख/Date of Pronouncement : 12/02/2025

आदेश/Order PER VIKRAM SINGH YADAV, AM These are three appeals filed by the Assessee against the respective orders of the Ld. CIT(A)/NFAC Delhi each dt. 27/01/2023 pertaining to Assessment Year 2017-18, 2012-13 and 2013-14 respectively.

2.

Since all these appeals involve common issue, the same were heard together and are being disposed off by this consolidated order.

3.

With the consent of both the parties, the case

The order continues below.

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