AKOLA ZILLA PARISHAD PRATHAMIK SHIKSHAK SAHKARI SANSTHA,AKOLA vs. INCOME TAX OFFICER, WARD-1, AKOLA

PER S. S. GODARA, JM: This assessee’s appeal for assessment year 2017-18 arises against the National Faceless Appeal Centre “NFAC”, Delhi’s order dated 20.05.2022 passed in case no. ITBA/NFAC/S/250/2022- 23/1043092697(1), 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 proceeded ex-parte.

2 denying section 80P deduction pertaining to interest income of Rs.3,70,752/- derived from members/employees. The Revenue’s stand all along of both the lower authorities’ detailed discussion is that the assessee’s employees could hardly be treated as members having availed credit facilities in the regular course of his business. That being the case, I quote this tribunal’s coordinate bench decision in ITO vs. Vidarbha Premier Co-Operative Housing Society [2017] 184 TTJ 145 (Nagpur - Trib.) holding similar interest income as eligible for section 80P deduction being in the nature of business income only. The assessee succeeds in its sole substantive grievance. Necessary computation shall follow as per law.