CHHINAM SEVA SAHAKARI MANDLI LTD.,NA vs. ARIVS.ASSISTANT COMMISSIONER OF INCOME TAX, NAVSARI CIRCLE,, NAVSARI

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ITA 145/SRT/2023Status: HeardITAT Surat13 March 2023AY 2015-16Bench: Joint Commissioner of Income Tax (JCIT), Navsari for appropriate direction. Chhinam Seva Sahakari Mandli Ltd Vs ACIT 42 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that interest and dividend income earned by a cooperative society from a cooperative bank is not eligible for deduction under Section 80P(2)(d) of the Income Tax Act. The AO's disallowance was upheld.

What were the facts?

The assessee, a cooperative society, claimed deductions under Section 80P(2)(d) for interest and dividend income earned from cooperative banks. The Assessing Officer disallowed these deductions, relying on a Karnataka High Court decision that held such income from cooperative banks is not eligible for deduction.

What were the issues?

Whether interest and dividend income earned by a cooperative society from a cooperative bank is eligible for deduction under Section 80P(2)(d) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

3 Chhinam Seva Sahakari Mandli Ltd Vs ACIT The assessee in their application stated that the decision of Hon’ble Karnataka High Court is not having jurisdiction in case of assessee. Decision of Hon’ble Karnataka High Court is contested before the Hon’ble Supreme Court. The JCIT vide its direction dated 22/12/2017, directed the Assessing Officer to pursue the fact available on record and the ratio of various judicial authorities which are applicable on the facts of the case. The Assessing Officer after considering the direction of JCIT, concluded that a cooperative bank is an urban commercial bank and does not fall under the purview of cooperative society referred in Section 80P(2)(d) of the Act. The assessee earned interest and dividend from various cooperative banks. The Assessing Officer disallowed the claim of interest and dividend income mentioned at serial No. 3,4,6,7 & 9 as mentioned in para-2 (supra), aggregating of Rs. 8,86,827/- under section 80P(2)(d).

5.

Aggrieved by the additions/disallowances, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee filed detailed written submissions. The submission of assessee are mentioned in para 5 of order of ld. CIT(A)/NFAC. In the submission, the assessee reiterated its earlier submission and also relied on certain case laws wherein the cooperative banks were considered as primary cooperative society. The ld. CIT(A) after considering the submissions of assessee upheld the order of Assessing Officer in a single sentence “6.1.2 Considering the above ,

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