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Facts
The assessee, a co-operative society, claimed deduction under Section 80P of the Income Tax Act, which was denied by the Assessing Officer. The CIT(A) allowed the deduction following a Supreme Court judgment. However, the current appeal raises issues not arising from the CIT(A)'s order.
Held
The Tribunal noted that the issues raised in the present appeal, concerning additions on reserves for bad and doubtful debts and provident fund fines, did not arise from the impugned order of the CIT(A).
Key Issues
Whether the issues agitated in the appeal, relating to additions on reserves for bad and doubtful debts and provident fund fines, arise from the impugned order of the CIT(A).
Sections Cited
80P, 143(3)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 09.10.2024 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is classified as a primary agricultural credit co- operative society. It is engaged in the business of accepting deposits Koduvayur Service Co-op. Bank Ltd. from members and providing credit facilities to members. The appellant filed the return of income for AY 2017-18 on 28.02.2017 declaring Nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act). Against the said return of income, the assessment was completed by the Income Tax Officer, Ward -5, Palakkad (hereinafter called "the AO") vide order dated 25.12.2019 passed u/s. 143(3) of the Act at a total income of Rs. 80,15,190/-. While doing so, the AO had denied the claim for deduction u/s. 80P by holding that the loans issued for agricultural purposes is less than 20%.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order had allowed deduction u/s. 80P of the Act following the judgement of the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT [2021] 431 ITR 1 (SC).
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
The appellant filed this appeal agitating the addition on reserves for bad and doubtful debts of Rs. 8,84,237/- and Provident Fund fine paid amounting to Rs. 7,355/-. The issue raised in this appeal does not arise out of the impugned order before us.
Order pronounced in the open court on 14th August, 2025.