M/S HATTARAGI SHRI BASAVESHWAR CO OPERATIVE CREDIT SOCIETY LTD,HUKKERI vs. ASSISTANT DIRECTOR OF INCOME TAX (ADIT), BENGALURU
Facts
The assessee, a credit cooperative society, claimed a deduction under Section 80P of the Income Tax Act for interest income derived from fixed deposits with a cooperative bank. The Assessing Officer denied this claim under Section 80P(2)(d), which was subsequently upheld by the CIT(A). Aggrieved by this denial and the rejection of a rectification petition, the assessee appealed to the Tribunal and sought to admit additional evidence.
Held
The Tribunal admitted the additional evidence under Rule 29 of ITAT Rules, noting that the CIT(A) had not considered all submissions and evidences. To meet the ends of justice, the Tribunal restored the disputed issues, along with the newly admitted evidence, to the CIT(A) for fresh verification and adjudication on merits, ensuring the assessee is given an adequate opportunity of hearing.
Key Issues
Whether interest income from deposits with a cooperative bank is eligible for deduction under Section 80P(2)(d) of the Income Tax Act, and whether additional evidence should be admitted for fresh adjudication by the CIT(A).
Sections Cited
250, 80P, 80P(2)(d), 143(1), 154, 139(1), Rule 29 of ITAT rules
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. No.82/PAN/2025 (A.Y. 2021-22) Hattaragi Shri Basaveshwar Vs ADIT, Cooperative Credit Society Ltd, CPC, . At Post Hattargi Electronic City, Taluka Hukkeri, Bangalore-560500, Belgaum-591243, Karnataka. Karnataka. PAN .No. AAAAS5618K (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent)
Assessee by Shri.Vishal Rao.AR Revenue by Smt.Rijula Uniyal. Sr.DR सुनवाई की तारीख/Date of Hearing 04.08.2025 घोषणा की तारीख/Date of Pronouncement 07.08.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of the ADDL/JCIT(A)-1 noida passed u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) on the denial claim of deduction u/sec80P of the Act. 2. The brief facts of the case are that, the assessee is a credit cooperative society and has filed the return of income for the A.Y 2021-22 on 15.02.2022 disclosing a total income of Rs.29,100 after claiming deduction u/sec
2 ITA. No. 82/PAN 2025. Hattaragi Shri Basavwshwar Co-Operative society Ltd. 80P of the Act. Subsequently the return of income was processed with the denial of claim of deduction under section 80P(2)(d) of the Act and determined total income of Rs.21,49,840/- vide order u/sec143(1) of the Act dated 19-10-2022. Further the assessee has filed rectification petition u/sec154 of the Act and the same was rejected vide order dated 13-11-2022. 3. Aggrieved by the order u/sec 154 of the Act, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) considered the grounds of appeal, submissions of the assessee and findings of the A.O but sustained the action of the A.O and dismissed the assesse appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal with the Hon’ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the A.O in treating the interest income from cooperative bank is ineligible for deduction u/s 80P(2)(d) of the Act. Whereas, the CIT(A) has considered the facts on claim of deduction u/s 80P(2)(d) of the act but took a different view. The Ld.AR emphasized that the return of income was filed within extended due date u/sec139(1) of the Act and the claim has to be allowed as the cooperative bank is treated as a cooperative society for eligibility of deduction u/s 80P(2)(d) of the Act. Further the Ld.AR submitted that the assessee has a good case on merits and has filed an application for admission of the additional evidence under
3 ITA. No. 82/PAN 2025. Hattaragi Shri Basavwshwar Co-Operative society Ltd. Rule 29 of ITAT rules and substantiated the submissions with the paper book and judicial decisions. Per contra, the Ld. DR submitted that the evidences were not examined by the lower authorities. 5. We heard the rival submissions and perused the material on record. The sole matrix of the disputed issue envisaged by the Ld.AR is in respect of granting of deduction u/s 80P(2)(d) of the Act to the Cooperative Society. The Ld. AR submitted that the interest income derived by a co-operative society from its deposits with the co-operative bank would be entitled for deduction U/sec 80 P(2)(d) of the Act. The Ld.AR highlighted that the asssesse has received interest on fixed deposits with the Belagavi District Co-op Bank Limited(BDCC) and further the co-operative bank is treated as a cooperative society for eligibility of deduction u/s 80P(2)(d) of the Act. The Ld.AR emphasized that the assesse has submitted the details as called for by the authorities. The assessee is filling the application for admission of additional evidences under Rule 29 of ITAT rules with English translation of the profit & loss account and the balance sheet which could not be submitted before the lower authorities. Further the evidences play a important role in decision making in the adjudicating proceedings. Prima-facie, the CIT(A) has dealt on the findings of the AO and has not considered the submissions/evidences of the assesse filed in the proceedings. Therefore considering the facts, circumstances
4 ITA. No. 82/PAN 2025. Hattaragi Shri Basavwshwar Co-Operative society Ltd. and additional evidences, the assessee should not suffer for non filing of material information, as the evidences play a vital role in decision making and we admit the additional evidence. Accordingly, to meet the ends of justice, we restore the disputed issues along with the additional evidence to the file of the CIT(A) to verify and adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And, we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 07.08.2025.
-S/d- -S/d- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 07/08/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy//
BY ORDER,
5 ITA. No. 82/PAN 2025. Hattaragi Shri Basavwshwar Co-Operative society Ltd. (Asstt. Registrar)ITAT, Panaji Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before PS the second member 4. Draft discussed/approved by PS Second Member. 5. Approved Draft comes to the PS Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed
