THE BORSAD PEOPLES CO OP CREDIT SOICETY LTD,ANAND vs. INCOME TAX OFFICER, WARD 1(3)(1), PETLAD, ANAND

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ITA 2566/AHD/2025Status: DisposedITAT Ahmedabad18 February 2026AY 2020-21Bench: Shri Sanjay Garg, Judicial Member And Annapurna Gupta (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and restored the matter to the file of the AO for verification. The AO is directed to examine if the assessee has already offered the interest income for taxation after deducting admissible expenditure, ensuring no double addition is made if the claim is found admissible.

What were the facts?

The Assessing Officer (AO) made an addition of Rs.19,18,546/- to the assessee's income, reasoning that interest income earned from a Co-operative bank was an investment in a bank, not a Co-operative Society, and therefore not eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act. The CIT(A) confirmed this addition. The assessee contended that it had already disallowed this deduction and offered Rs.10,69,070/- for taxation after claiming proportionate expenditure.

What were the issues?

Whether interest income earned by a co-operative society from a co-operative bank is eligible for deduction under Section 80P(2)(a)(i), and to verify if the assessee already offered the income for taxation to avoid double addition.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: Shri Sanjay Garg & Annapurna Gupta

For Appellant: Shri Mehul Shah, AR
Hearing: 09/02/2026Pronounced: 18/02/2026

Year : 2020-21 The Borsad Peoples Co-op. The Income Tax Officer बनाम/ Credit Society Ltd. Ward-1(3)(1) v/s. Silver Point Petlad – 388 450 Near Bus Stand Borsad Anand = 388 540 (Gujarat) "थायी लेखा सं./PAN: AAAAT 1501 C (अपीलाथ)/ Appellant) (*+ यथ)/ Respondent) Assessee by : Shri Mehul Shah, AR Revenue by : Shri Ketaki Desai, Sr.DR सुनवाई की तारीख/Date of Hearing : 09/02/2026 घोषणा की तारीख /Date of Pronouncement: 18/02/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 08/10/2024 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2020-21.

2.

The Assessing Officer (AO) made the addition of Rs.19,18,546/- observing that the interest income earned by the assessee-society was from The Borsad Peoples Co-op. Credit Society Ltd. vs. ITO Asst. Year : 2020-21 2 Co-operative bank and the same being an investment in bank and not in a Co-operative Society by the assessee-society and, hence, the same was not allowable u/s.80P(2)(a)(i) of the Act. The Ld. CIT(A) confirmed the addition so made by the AO.

3.

Before us, the Ld. Counsel for the assessee submitted that the assessee had already disallowed the said deduction of the interest income in its return of income/computation. That the assessee, after claiming the corresponding/proportionate expenditure, has offered, for taxation an income of Rs.10,69,070/-.

4.

In view of the above submissions, the imputed order of the Ld. CIT(A) is hereby set aside and the matter is restored to the file of AO for verification of the aforesaid limited fact. If the assessee has already offered for taxation the aforesaid receipt of interest income after deduction of the admissible expenditure, no further addition will be granted. The AO will examine the contention including the admissibility of the proportionate expenditure and if the claim is found admissible, then no double addition shall be made of the same receipt.

5.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.

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