DCIT, CIRCLE 1(1)(1), AHMEDABAD, AHMEDABAD vs. GUJARAT STATE COOPERATIVE MARKETING FEDERATION LTD, AHMEDABAD

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ITA 2051/AHD/2025Status: DisposedITAT Ahmedabad19 February 2026AY 2014-15Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)3 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the original revision order under section 263, which formed the basis for the disallowance, had indeed been quashed by a co-ordinate bench (ITA No. 640/Ahd/2019). Upon verification, no appeal against that quashing order was found pending before the Gujarat High Court. Consequently, the Tribunal held that the Revenue's present appeal, being based on an infructuous revision order, had no legal standing and was dismissed.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting a disallowance of Rs. 3,29,44,728/- under section 80P(2)(d) related to interest income from a cooperative bank. This disallowance stemmed from a revision order passed under section 263 by the Assessing Officer, which was subsequently quashed by a co-ordinate bench of the Tribunal. The Revenue filed the present appeal, claiming an appeal against the quashing of the 263 order by ITAT was before the Hon'ble High Court.

What were the issues?

Whether the CIT(A) was justified in deleting the disallowance under section 80P(2)(d) when the underlying revision order under section 263 had been quashed by the Tribunal and no appeal against that quashing was pending before the High Court.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 80P,Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha

Deputy Commissioner Gujarat State of Income Tax Cooperative Marketing Circle-1(1)(1), Vs Federation Ltd. Ahmedabad 49, Shrimali Society, Opp. Navrangpura Police Station, Navrangpura, Ahmedabad-380009 Gujarat (Appellant) PAN: AAAAG2927K (Respondent) Revenue Represented: Shri Kalpesh Rupavatia, Sr. D.R. Assessee Represented: Shri S.N. Divatia, & Shri Samir Vora, A.Rs. Date of hearing : 17-02-2026 Date of pronouncement : 19-02-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER

This appeal is filed by the Revenue as against appellate order dated 20-08-2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the order passed under section 143(3) r.w.s. 263 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2014-15.

2.

The Grounds of Appeal

raised by the Revenue are as follows: 1. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the disallowance u/s. 80P amounting to Rs.3,29,44,728/-, without appreciating the fact that the interest Income earned from Co-operative bank is not eligible for deduction in view of the provision of sec 80P(2)(d) of the IT Act ?"

2. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary".

3. It is, therefore, prayed that the order of Ld. CIT(A) may be set aside and that of the Assessing Officer be restored".

3.

Ld. Sr. D.R. appearing for the Revenue fairly conceded that the Revision order passed under section 263 to re-examine the allowability of deduction u/s. 80P(2)(d) in respect of interest income of Rs.3,29,44,728/- earned by the assessee. This Revision order was quashed by Co-ordinate Bench of this Tribunal in vide order dated 01-06-2022. Since Revenue is in appeal before Hon’ble High Court of Gujarat against the quashing of 263 order by ITAT, the present appeal is filed by the Revenue.

4.

Initially none appeared on behalf of the assessee and conclusion of the hearing Ld.Counsel for the assessee appeared and filed his Vakalatnama and also explained when the matter was called he was held up in the other Bench lead by Hon’ble Vice President of this Tribunal. Ld. Counsel further submitted copy of the Tribunal order in and also produced before us copy from the Website of Hon’ble Gujarat High Court clearly showing no appeal is pending against the order of this Tribunal in ITA No. 640/Ahd/2019.

5.

Ld. Counsel further submitted before us verification of this case by referring to well as searched by assessee’s name, both searches given the result that “no data available” in the Hon’ble Gujarat High Court Website. Since the very Revision order passed u/s. 263 itself is quashed by this Tribunal in the consequential orders passed by the Lower Authority has no legs to stand in the eyes of law. Therefore the present appeal filed by the Revenue is hereby dismissed as infructuous.

6.

In the result, the appeal filed by the Revenue is hereby dismissed.

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