M. P POLICE SAKH SAHKARI SANSTHA MARYADIT UJJAIN,UJJAIN vs. INCOME TAX OFFICER -2(1), UJJAIN

ITA 192/IND/2024Status: DisposedITAT Indore28 February 2025AY 2020-21Bench: SHRI MANISH BORAD (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee, not being a cooperative bank with a banking license, was not eligible for deduction under Section 80P on interest earned from scheduled banks, distinguishing it from cases involving cooperative banks. The CIT(A)'s partial relief was found to be unsustainable.

What were the facts?

The assessee, a cooperative society, earned interest income from surplus funds invested in banks. The Assessing Officer denied deduction under Section 80P, treating the interest as income from other sources. The CIT(A) granted partial relief, allowing deduction on interest earned from reserves and on expenditure against non-business income.

What were the issues?

Whether interest income earned by a cooperative society from deposits with scheduled banks is eligible for deduction under Section 80P, and whether the assessee qualifies as a cooperative bank for such deductions.

Which sections of the Income-tax Act were involved?

Section 80P

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, INDORE SMC BENCH, INDORE

For Appellant: Shri Milind Wadhwani, AR
For Respondent: Shri Ashish Porwal, Sr.DR
Hearing: 27.02.2025Pronounced: 28.02.2025

This appeal by the assesse is directed against the order dated

30.07.

2024 of the Commissioner of Income Tax (Appeals), National

Faceless Appeal Centre, Delhi for A.Y.2020-21 which is arising from the assessment order u/s 143(3) of the Act dated 23.09.2022

framed by Assessing Officer 2(1), Ujjain.

2.

Assessee has raised following grounds of appeal: M.P. Police Sakh Sahakari Sanstha Maryadit– A.Y 2020-21

“1. That on the facts and circumstances of the case and in law, The Ld. CIT (A) erred in upholding the action of Ld. AO in determining the total income of the appellant, except for the partial relief granted in respect of allowing deduction on the interest earned out of the amount of profit which is transferred to reserves and

The order continues below.

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