THE MULLANPUR GARIBDAS CO-OP MULTIPURPOSE SOCIETY,MULLANPUR vs. PR. CIT-II, CHANDIGARH

ITA 569/CHANDI/2018Status: DisposedITAT Chandigarh16 May 2024AY 2013-14Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)86 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer (AO) had not properly examined the issue and failed to apply relevant Supreme Court judgments. The interest income earned from cooperative banks was not eligible for deduction under Section 80P(2)(d) as it was not derived from investments with other cooperative societies, and the principle of mutuality was broken.

What were the facts?

The assessee, a cooperative society, claimed deduction under Section 80P(2)(d) on interest income earned from fixed deposits with cooperative banks. The PCIT initiated proceedings under Section 263, holding that the interest income was taxable under Section 56 and not eligible for deduction under Section 80P.

What were the issues?

Whether interest income earned by a cooperative society from fixed deposits with cooperative banks is eligible for deduction under Section 80P(2)(d), and whether the AO's assessment order was erroneous and prejudicial to the revenue.

Which sections of the Income-tax Act were involved?

Section 80P,Section 56,Section 263,Section 80P(2)(d),Section 80P(4)

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Cases cited in this judgment(25)Show list

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Income Tax Appellate Tribunal, CHANDIGARH

Before: SHRI A.D.JAIN & SHRI KRINWANT SAHAY

For Appellant: Shri Tej Mohan Singh, Advocate
For Respondent: Smt. Garima Singh, CIT, DR
Hearing: 02.05.2024Pronounced: 16.05.2024

Heard together (3 matters)

ITA No. 515/CHD/2017
ITA No. 645/CHD/2019
ITA 569/CHD/2018

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PER A.D.JAIN, VICE PRESIDENT

I

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