ASSTT.COMMISSIONER OF INCOME TAX CIRCLE-5, NAGPUR vs. THE NIRMAL UJWAL CREDIT CO-OP SOCIETY LTD, NAGPUR

ITA 390/NAG/2019Status: HeardITAT Nagpur27 November 2024AY 2012-13Bench: SHRI V. DURGA RAO (Judicial Member)26 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the interest income earned by the co-operative society from deposits with nationalized banks is attributable to its business and eligible for deduction under Section 80P(2). It further held that the AO erred in estimating income from construction activity without rejecting the assessee's books of accounts or established accounting method.

What were the facts?

The assessee, a credit co-operative society, earned interest income from deposits with nationalized banks and also undertook construction activity. The Assessing Officer (AO) added the interest income as 'Income From Other Sources' and estimated income from construction activity. The assessee contended that the interest income was part of its business operations and the construction income should be accounted for as per its established accounting method.

What were the issues?

Whether interest income earned by a co-operative society from deposits with nationalized banks is eligible for deduction under Section 80P(2), and whether income from construction activity can be estimated without rejecting the assessee's books of accounts.

Which sections of the Income-tax Act were involved?

Section 80P(2),Section 145

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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER

For Appellant: Shri Manoj G. Moryani
For Respondent: Shri Vikash Agrawal

PER K.M. ROY, A.M.

The present appeal has been filed by the Revenue challenging the impugned order dated 27/09/2019, passed by the learned Commissioner of Income Tax (Appeals)–1, Nagpur [―learned CIT(A)‖] for the assessment year 2012–13. 2. The following grounds have been raised by the Revenue.

‖1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was correct in allowing the relief in respect of the addition made by the AO u/s 80P(2) of the I.T. Act 1961 on account of Interest received from other than Co-op. Society, in view of the Honorable Apex Court judgment in the case of The Citizen Co-operative Society Ltd, Hyderabad -Vs ACIT-Cir

The order continues below.

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