NEERI CO-OPERATIVE CREDIT SOCIETY LIMITED,NAGPUR vs. INCOME TAX OFFICER WARD 1(4), NAGPUR, NAGPUR

PDF · subscribers
ITA 227/NAG/2023Status: DisposedITAT Nagpur21 March 2024AY 2014-15Bench: SHRI SATBEER SINGH GODARA (Judicial Member)2 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest income earned from nationalized banks by a cooperative society qualifies for deduction under Section 80P, citing a precedent. The deduction was allowed in principle, with the Assessing Officer to finalize the computation.

What were the facts?

The assessee claimed deduction under Section 80P for interest income of Rs. 1,14,079/- received from the State Bank of India. The Assessing Officer and NFAC disallowed this deduction, holding that bank interest is not eligible for deduction for a cooperative society.

What were the issues?

Whether interest income earned from a nationalized bank by a cooperative society is eligible for deduction under Section 80P of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR

Before: SHRI SATBEER SINGH GODARA

Hearing: 18.03.2024Pronounced: 21.03.2024

[THROUGH VIRTUAL HEARING AT PUNE] BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A.No.227/NAG./2023 Assessment Year 2014-2015 Neeri Cooperative Credit The Income Tax Officer, Society Limited, Neeri, Ward-1(4), Aaykar Wardha Road, Nagpur. vs. Bhavan, Civil Lines, PIN – 440 022 Nagpur – 440 001. PAN AAAAN8213D Maharashtra. Maharashtra (Appellant) (Respondent) -None- For Assessee : For Revenue : Shri Abhay Y Marathe, Sr.DR Date of Hearing : 18.03.2024 Date of Pronouncement : 21.03.2024 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s appeal for assessment year 2014-2015, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2022- 23/1049664354(1), dated 13.02.2023, involving proceedings u/s. 143(3) of the Income Tax Act, 1961 (in short “the Act”).

Case called twice. None appears at assessee’s behest. It is accordingly heard ex-parte.

2.

It emerges during the course of hearing at the outset that there is hardly any need for us to delve with the relevant factual matrix at length once it has come on record that both the learned lower authorities, more particularly, the Assessing Officer, had 2 ITA.No.227/NAG./2023 disallowed the assessee’s sec.80P deduction interest income of Rs.1,14,079/- received from State Bank of India. Both the learned lower authorities hold that the above stated bank interest is not eligible since not derived from co-operative society. We find that case law [2017] 396 ITR 371 [AP] The Vavveru Co-operative Rural Bank Ltd. vs. CCIT has already settled the issue that interest income from nationalized banks also qualifies for the impugned sec.80P deduction.

3.

I accordingly adopt the impugned sec.80P deduction in principle and leave it open for the learned Assessing Officer to finalise his consequential computation as per law. Ordered accordingly. Allowed.

Order pronounced in the open Court on 21.03.2024.

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →