INCOME TAX OFFICER, WARD-1(1), JABALPUR, JABALPUR vs. SHAKTI MAHILA SANGH BAHU-UDDESHIYA SAHKARI SAMITI MARYADIT, MAJHOLI
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Income Tax Appellate Tribunal, JABALPUR BENCH, JABALPUR
Before: SH. KUL BHARAT & SH. NIKHIL CHOUDHARY
IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SH. KUL BHARAT, VICE PRESIDENT AND SH. NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA No.119/JAB/2024 A.Y.-2017-18 Income Tax Officer, Ward- vs Shakti Mahila Sangh Bahu-Uddeshiya 1(1), Jabalpur, M.P. Sahkari Samiti Maryadit, Majholi PAN:AAFAS3026A (Appellant) (Respondent)
Assessee by: None Revenue by: Sh. Alok Bhura, Sr. DR Date of hearing: 18.09.2025 Date of pronouncement: 19.09.2025 O R D E R PER NIKHIL CHOUDHARY, A.M. This is an appeal filed by the Revenue against the orders of the ld. CIT(A), NFAC, passed under section 250 of the Income Tax Act, 1961 on 22.05.2024 wherein the ld. CIT(A) had allowed the appeals of the assessee against the orders of the ld. AO under section 143(3) r.w.s. 263 dated 28.03.2023. The grounds of appeal are as under:-
“1. Whether, on the facts and in the circumstances of the case and in law, the Ld CIT(A) erred while considering the amount of Rs. 1,72,53,988/- as eligible income for deduction u/s 80P(2)(a)(i) of the IT Act. 2. Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in the amount of Rs. 1,72,53,988/- as business income without appreciating the fact that said income was received by the assessee from Business Correspondence from IDBI and the same was not a business income.
ITA No.119/JAB/2024 A.Y.- 2017-18 Shakti Mahila Sangh Bahu- uddeshiya Sahkari Samiti Maryadit 3. Whether, on the facts and in the circumstances of the case and in law, the Ld CIT(A) has passed order ignoring crucial fact of the case as discussed in assessment order by the AO that the assessee is a Bahuuddesiya Co-operative Society, providing credit facilities to its members but it is also working as a Business Correspondent for IDBI. 4. Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the appeal of the assessee without appreciating the fact that the assessee's appeal, against the order passed u/s 263 of the IT Act, dated 14.02.2022, on the impugned issue of eligibility of deduction w/s 80P of the Income Tax Act in respect of income received from 'Business Correspondence from IDBI was dismissed by the Hon'ble ITAT, Jabalpur in assessee's own case vide order in ITA No. 33/JAB/2022, dated 22.03.2024. 5. The appellant reserves the right to add, amend or alter the grounds of appeal on or before the date the appeal is finally heard for disposal.”
The facts of the case are that the assessee is Cooperative Society registered under the Cooperative Societies Act and engaged in providing Micro-Finance to its members and self help groups in the interior villages. It filed its return of income for the A.Y. 2017-18 declaring its total income at Rs.1,34,10,566/- and thereafter claiming this entire amount as deduction under section 80P of the Income Tax Act. The original assessment under section 143(3) of the Act was completed at returned income. Subsequently, the PCIT-1, Jabalpur passed an order under section 263 of the Income Tax Act on 14.02.2022 and held this order passed under section 143(3) to be erroneous in so far as it was prejudicial to the interest of the Revenue. Accordingly, the said order was set aside for de novo assessment and pursuant to this, the ld. AO passed a fresh order under section 143(3) r.w.s. 263 and 144B of the Act on 28.03.2023 determining the assessee’s total income at Rs.1,72,53,990/-. The amount
ITA No.119/JAB/2024 A.Y.- 2017-18 Shakti Mahila Sangh Bahu- uddeshiya Sahkari Samiti Maryadit of Rs. 1,72,53,990/- was treated as commission income received against services provided as business correspondent and assessed under income from other sources of the Act.
Aggrieved with the same, the assessee preferred an appeal to the ld. CIT(A). The ld. CIT(A) after considering the facts and circumstances of the case held that the commission income of Rs.1,72,53,988/- received by the assessee from IDBI was the business income of the assessee and hence it was eligible for deduction under section 80P(2)(a)(i) of the Act and the ld. AO was not justified in disallowing the deduction under section 80P in respect of this income. Hence, the addition made was deleted.
The Department was aggrieved with such order of the ld. CIT(A) and had accordingly filed this appeal. However, on the appointed date of hearing, Sh. Alok Bhura, Sr. DR, invited our attention to invited our attention to the Circular No.9/2024 dated 17.09.2024, wherein the CBDT had revised the monetary limit of filing of appeals before the Income Tax Appellate Tribunal to Rs. 60 Lacs and pointed out that in the present case the tax effect was only Rs.53,31,481/-. He further pointed out that the case did not fall under any of the exceptions as laid down by the CBDT, vide their Circular No. 05/2024 dated 15.03.2024 and therefore, the ld. AO had recommended the withdrawal of the appeal. Accordingly, it was prayed that the Department may kindly be allowed to withdraw the said appeal in view of the aforesaid CBDT Circulars.
ITA No.119/JAB/2024 A.Y.- 2017-18 Shakti Mahila Sangh Bahu- uddeshiya Sahkari Samiti Maryadit 5. We have duly considered the matter. In view of the fact that the Department has sought permission to withdraw the appeal in the light of the CBDT Circular No. 09/2024 dated 17.09.2024 and the tax effect is below the prescribed limit, the appeal is permitted to be withdrawn and is dismissed as such.
In the result, the appeal of the Department is dismissed.
Order pronounced in the Open Court on 19/09/2025.
Sd/- Sd/- [KUL BHARAT] [NIKHIL CHOUDHARY] VICE PRESIDENT ACCOUNTANT MEMBER DATED: 19/09/2025 Sh
