M/S O.F.BOARD CO-OPERATIVE CREDIT SOCIETY LTD.,KOLKATA vs I.T.O.,WARD-35(1), KOLKATA

Income Tax Appellate Tribunal, KOLKATA ‘B(SMC

Before: Shri Satbeer Singh Godara

The assessee’s appeal for assessment year 2014-15, arises against the ld. Commissioner of Income Tax (Appeals)-10, Kolkata’s order dated 28.02.2019 passed in the case No. 283/CIT(A)-10/W, 35(1)/14-15/2016- 17/Kol, involving proceedings under section 250 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

It transpires from the case records that the assessee’s only grievance per its averments is that both the lower authorities have erred in law and on facts in making disallowances under section 40(a)(ia) and section 40A(3) on account of salary and other expenses involving sums of Rs.26,02,310/- and Rs.21,475/- respectively.

Assessment Year: 2014-2015 M/s. O.F. Board Cooperative Credit Society Limited

There is no dispute between the parties that the assessee has been assessed to tax as a cooperative credit society and entitled for deduction under section 80P. In this factual background, I notice during the course of hearing that the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has issued a circular bearing No. 37/2016 dated 02.11.2016 making it clear that all deductions admissible in Chapter VI-A also include various disallowances/additions made under sections 32, 40(a)(ia), 40A(3), 43B, etc. since related to business activity. I, therefore, decline the Revenue’s arguments supporting the impugned disallowances and direct the Assessing Officer to treat the foregoing two heads under ‘salary’ and ‘other expenses’ as eligible for deduction under section 80P as per law.

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on January 31, 2020.

M/S O.F.BOARD CO-OPERATIVE CREDIT SOCIETY LTD.,KOLKATA vs. I.T.O.,WARD-35(1), KOLKATA