THE JAMKHANDI TALUK SCHOOL TEACHER CO-OP CREDIT SOCIETY,JAMKHANDI vs. INCOME TAX OFFICER, WARD-1. , BAGALKOT

ITA 549/BANG/2024Status: DisposedITAT Bangalore23 April 2024AY 2020-21Bench: SHRI CHANDRA POOJARI (Accountant Member), SHRI KESHAV DUBEY (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal restored the issue of deduction under section 80P(2)(a)(i) to the AO for fresh consideration, following the Apex Court's ruling in Mavilayi Service Co-operative Bank Ltd. regarding 'members'. For deduction under section 80P(2)(d), the AO was directed to verify if interest was earned from investments with Cooperative Societies. If so, deduction is allowable. Otherwise, if income is treated as 'Income from Other Sources', relief under section 57 is to be granted.

What were the facts?

The assessee, a cooperative society, claimed deduction under section 80P(2)(a)(i) and 80P(2)(d) for interest income earned on reserve fund investments. The Assessing Officer and CIT(A) denied this deduction, treating the interest income as 'Income from Other Sources'. The assessee contended that the income was derived from statutory investments mandated by the Karnataka Cooperative Societies Act.

What were the issues?

Whether the interest income earned by the cooperative society on its investments is eligible for deduction under section 80P, and if not, whether expenses incurred to earn such income are deductible under section 57.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 80P(2)(d),Section 57,Section 56,Section 143(3)

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Income Tax Appellate Tribunal, “C’’ BENCH: BANGALORE

Before: SHRI CHANDRA POOJARI & SHRI KESHAV DUBEY

For Appellant: Shri Ashok Mudnur, A.R
For Respondent: Shri Ganesh R. Ghale, Standing Counsel for department
Hearing: 23.04.2024Pronounced: 23.04.2024

PER CHANDRA POOJARI, ACCOUNTANT MEMBER:

This appeal by assessee is directed against order of NFAC for the assessment year 2020-21 dated 11.3.2024. The assessee has raised following grounds of appeal:

1.

The Ld. CIT(A) has erred in upholding the Assessing Officer's order u/s 143(3) which is opposed to the law and facts of the case.

2.

The Ld. CIT(A) erred in disallowing the deduction of Rs. 9,23,130/- claimed u/s 80P(2)(a)(i) ignoring submissions made and various court rulings in support of our appeal.

3.

The learned CIT[A] failed to appreciat

The order continues below.

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