UOH STAFF COOPERATIVE CREDIT SOCIETY LIMITED,HYDERABAD vs. ITO., WARD-8(1), HYDERABAD

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ITA 469/HYD/2025Status: DisposedITAT Hyderabad21 January 2026AY 2021-2022Bench: the Ld. CIT(A). Before the Ld. CIT(A), the assessee has reiterated its arguments made before the A.O. and claimed that interest earned from fixed deposit with the nationalized banks is also eligible for claiming deduction under Section 80P(2)(a)(i) or Section 80P(2)(d) of the Act because the interest received is forming part of business of the assessee and therefore the same cannot be disallowed under Section 80P(2)(a)(i) of the Act. The Ld. CIT(A), after considering the submissions of the 1 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per Section 80P(2)(d), only interest earned from deposits with other cooperative societies is eligible for deduction. Interest earned from nationalized banks is not eligible for deduction, as confirmed by the Supreme Court in the case of Bengaluru Club vs. CIT. The assessee's reliance on other High Court decisions was found not applicable as they were rendered prior to the Supreme Court ruling.

What were the facts?

The assessee, a cooperative society, filed its return declaring Nil income after claiming deductions under Section 80P(2)(a)(i) for AY 2021-2022. The AO disallowed interest income of Rs. 2,14,662/- earned on fixed deposits with a nationalized bank, stating it was not eligible for deduction under Section 80P(2)(d). The CIT(A) set aside the issue to the AO for verification.

What were the issues?

Whether interest income earned by a cooperative society from fixed deposits with a nationalized bank is eligible for deduction under Section 80P(2)(d) of the Income-tax Act, 1961.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, Hyderabad “SMC” Bench, Hyderabad

Pronounced: 21.01.2026

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-

1. 1. निर्धाररती/The Assessee : UOH Staff Cooperative Credit Society, University of Hyderabad, Admin Block back side, above SBI, Prof C R Rao Road, Gachibowli – 500046, Hyderabad, Telangana. 2. रधजस्व/ The Revenue : The Income Tax Officer, Ward – 8(1), Hyderabad.

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