SHRI HANUMAN CREDIT SOUHARDA SAHAKARI SANGH LTD,BELAGAVI vs. INCOME TAX OFFICER, WARD - 1, NIPPANI

ITA 235/PAN/2025Status: DisposedITAT Panaji16 February 2026AY 2017-18Bench: SHRI PAVAN KUMAR GADALE (Judicial Member)18 pages
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What did the Tribunal hold?

The Tribunal held that the issue regarding dealings with nominal members needs further verification by the Assessing Officer. It also directed the Assessing Officer to allow deduction for interest income from cooperative banks and restore the issue of interest income from scheduled banks for adjudication on merits, with the total deduction restricted to the original claim.

What were the facts?

The assessee, a cooperative society registered under the Karnataka Souharda Sahakari Act, 1997, claimed deduction under Section 80P(2)(a)(i) for credit facilities provided to its members, including nominal members. The Assessing Officer and CIT(A) denied this deduction and also denied deduction for interest income from cooperative banks and scheduled banks.

What were the issues?

Eligibility of a cooperative society registered under the Karnataka Souharda Sahakari Act for deduction under Section 80P(2)(a)(i) when dealing with nominal members, and the taxability of interest income from cooperative and scheduled banks.

Which sections of the Income-tax Act were involved?

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

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Income Tax Appellate Tribunal, “SMC” BENCH PANAJI

Hearing: 12.02.2026Pronounced: 16.02.2026

PER PAVAN KUMAR GADALE, JM: The assessee has filed the appeal against the order of ADDL/JCIT(A)-2 Surat passed u/se 143(3) and u/sec250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining (i)the denial of claim of deduction u/sec80P(2)(a)(i) of the Ac made by the Assessing Officer in respect of dealings with the Associate/Nominal members and without prejudice alternate relief u/sec80P(2)(d) of the Act on interest income from cooperative banks and scheduled banks (ii) the denial of deduction under section 80P(2)(a)(i) of the Act as 2 Shri. Hanuman Cre

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