Section 57 of the Income Tax Act

Income-tax Act, 2025: s.93

Section 57 of the Income-tax Act, 1961 corresponds to section 93 (Deductions) of the Income-tax Act, 2025.

Read section 93 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 57 is CIT v. Andhra Pradesh State (200 Taxmann 220), cited in 348 of the 1,225 judgments on BharatTax that turn on this section.

Leading authorities on Section 57

CIT v. Andhra Pradesh State
200 Taxmann 220 · 2011 · High Court
348
citing judgments

Interest earned by a Co-operative Society from investing fixed deposits in banks is entitled to a deduction under Section 80P(2)(a)(i) of the Income-tax Act.

Kerala State Co-operative Agricultural and Rural Development Bank Ltd. v. Assessing Officer
154 Taxmann.com 305 · 2023 · Supreme Court
136
citing judgments

Section 80P(4) is not applicable to a cooperative bank unless it is classified as a 'bank' under the provisions of the Banking Regulation Act, 1949. For cooperative banks not meeting this definition, the deduction for interest earned from investments in cooperative societies is available under Section 80P(2)(d) of the Income-tax Act.

CIT v. Bankipur Club Ltd.
226 ITR 97 · 1997 · Supreme Court
125
citing judgments

The doctrine of mutuality applies only when there is complete identity between the contributors to a common fund and the participants in its surplus. Income received from non-members or distinct classes of members who do not share this identity is not covered by mutuality and is taxable.

Totgars Co-operative Sale Society Ltd. v. ITO
58 Taxmann.com 35 · 2015 · High Court
114
citing judgments

When a co-operative society earns interest on deposits with scheduled banks, this income is assessable under "Income from other sources" (Section 56), and the society is entitled to deduct related administrative and proportionate expenses under Section 57 to tax only the net interest income.

CIT v. Karnataka State Co-operative Apex Bank
251 ITR 194 · 2001 · Supreme Court
106
citing judgments

Interest income earned by a co-operative bank from statutory investments or mandatory deposits, which are essential for conducting its banking business, qualifies as business income and is exempt under Section 80P(2)(a)(i) of the Income-tax Act.

CIT v. V.P. Gopinathan
248 ITR 449 · 2001 · Supreme Court
66
citing judgments

Interest paid on a loan taken against the security of a fixed deposit cannot be set off against or reduced from the interest income earned on that fixed deposit. The Income-tax Act does not permit such netting.

79 Taxman 378/216 ITR 548 (Bom.) 4. CIT v. Macbrout Engineering (P.) Ltd.
52 Taxmann.com 219 · 2014 · High Court
43
citing judgments

If the Revenue accepts the Tribunal's decision for earlier years without challenge, it cannot assail the same decision in subsequent years, provided the facts are similar.

Seth R. Dalmia v. CIT
110 ITR 644 · 1977 · Supreme Court
40
citing judgments

An indirect connection between expenditure and income can be sufficient to establish the required nexus for deductibility under Section 57(iii). The connection need not be direct.

254(2) of the Act. In Honda Siel Power Products Ltd. v. CIT
295 ITR 466 · 2007 · Supreme Court
35
citing judgments

A mistake apparent from the record that prejudices a party is rectifiable under section 254(2) of the Act.

Cartini India Ltd. v. Addl. CIT & Anr.
314 ITR 275 · 2009 · High Court
34
citing judgments

Reopening an assessment based on a mere change of opinion, without any tangible material, is invalid. The Assessing Officer cannot withdraw an issue after considering the assessee's reply and then re-open the case on the same grounds.

Judgments on Section 57

M/S G.D. Tambi & Sons, Jaipur vs. ACIT, Circle-3, Jaipur

In the results, the appeal of the assessee in ITA no

ITA 177/JPR/2025[2016-17]Status: DisposedITAT Jaipur20 May 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. P. C. Parwal, CAFor Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 143(3)Section 24

M/S G.D. Tambi & Sons, Jaipur vs. ACIT, Circle-3, Jaipur

In the results, the appeal of the assessee in ITA no

ITA 176/JPR/2025[2015-16]Status: DisposedITAT Jaipur20 May 2025AY 2015-16

Bench: moving towards the facts of the case we would like to mention that the assessee has assailed the appeal for assessment year 2015-16 in

For Appellant: Sh. P. C. Parwal, CAFor Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 143(3)Section 24

Vardhman Special Steels Ltd., Ludhiana vs. DCIT, Circle-1, Ludhiana

ITA 79/CHANDI/2024[2018-19]Status: DisposedITAT Chandigarh20 May 2025AY 2018-19
For Appellant: Shri Tejmohan Singh, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Section 115JSection 142(1)Section 143(2)Section 14ASection 270ASection 36(1)Section 36(1)(iii)Section 57

Thrissur District Police Co Operative Society Ltd, Thrissur vs. Income Tax Officer, Thrissur

In the result appeal filed by the assessee is partly allowed for statistical purposes

ITA 409/COCH/2024[2016-17]Status: DisposedITAT Cochin19 May 2025AY 2016-17

Bench: Shri Inturi Rama Rao & Shri Keshav Dubey

For Appellant: Shri M.Ramdas, CAFor Respondent: Smt. Leena Lal, Sr. A.R
Section 154Section 250Section 253(5)

Thrissur District Police Co Operative Society Ltd, Thrissur vs. Income Tax Officer, Thrissur

In the result appeal filed by the assessee is partly allowed for statistical purposes

ITA 408/COCH/2024[2014-15]Status: DisposedITAT Cochin19 May 2025AY 2014-15

Bench: Shri Inturi Rama Rao & Shri Keshav Dubey

For Appellant: Shri M.Ramdas, CAFor Respondent: Smt. Leena Lal, Sr. A.R
Section 154Section 250Section 253(5)

Shyamjikrushna Varma Township, Rajkot vs. The ITO Ward 2 (1) (1) Rajkot, Rajkot

In the result, appeal filed by the assessee is allowed for statistical

ITA 264/RJT/2025[2018-19]Status: DisposedITAT Rajkot16 May 2025AY 2018-19

Bench: Dr. Arjun Lal Saini

For Respondent: Shri Dheeraj Kumr Gupta, Sr-DR
Section 147Section 250Section 46A

Shivam Niranjanlal Poddar, Gandhidham vs. Income Tax Ward, 2, Gandhidham

In the result, appeal of the assessee is allowed

ITA 310/RJT/2024[2020-2021]Status: DisposedITAT Rajkot16 May 2025AY 2020-2021

Bench: Dr. Arjun Lal Sainiआयकर अपील सं./ Ita No.310/Rjt/2024 "नधा"रण वष"/Assessment Year : 2020-21 Shivam Niranjanlal Poddar, Income Tax Officer, बनाम/ Plot No.62, Sector-1, Ward-2, Gandhidham-370 201 Vs Gandhidham-370 201 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aiypp 2374 E (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रती क" ओर से/Assessee By : Shri Chetan Agarwal, Ar राज"व क" ओर से/Revenue By : Shri Dheeraj Kumar Gupta, Sr-Dr

For Appellant: Shri Chetan Agarwal, ARFor Respondent: Shri Dheeraj Kumar Gupta, Sr-DR
Section 143(3)Section 250Section 270ASection 57

Income Tax Officer-1(5), Kanpur vs. Shri Vivek Benara, Kanpur

In the result, the appeal of the assessee is partly allowed

ITA 182/LKW/2018[2013-14]Status: DisposedITAT Lucknow15 May 2025AY 2013-14

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

Section 271Section 68

Fatimabai Hajimiya Kokani Pvt Trust., Nashik vs. ITO (Exep) Ward 1, Nashik

In the result, appeal of the assessee is allowed for statistical purposes

ITA 2373/PUN/2024[2015-16]Status: DisposedITAT Pune15 May 2025AY 2015-16

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2373/Pun/2024 Assessment Year : 2015-16

For Appellant: Shri Sanket JoshiFor Respondent: Mrs. Indira Adakil
Section 143(1)Section 250Section 5

Jacob Thomas, Kozhencherry vs. ACIT, Thiruvalla Range, Thiruvalla

In the result, appeal filed by the assessee stands partly allowed

ITA 138/COCH/2024[AY 2020-2021]Status: DisposedITAT Cochin14 May 2025

Bench: Shri Inturi Rama Rao, Am & Shri Soundararajan K., Jm Assessment Year: 2020-21 Jacob Thomas .......... Appellant 1, Mulamoottil, Kozhencherry 689641 [Pan: Ackpt3269L] Vs. Acit, Ward-1 & Tps, Thiruvalla .......... Respondent Appellant By: Shri Rajakannan, Advocate Respondent By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 20.03.2025 Date Of Pronouncement: 14.05.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi [Cit(A)], Dated 27.12.2023 For Assessment Year (Ay) 2020-21. 2. Brief Facts Of The Case Are That The Appellant Is An Individual Deriving Income Under The Head ‘Business’. The Return Of Income For Ay 2020-21 Was Filed On 31.12.2020 Declaring Nil. Against The Said Return Of Income, The Assessment Was Completed By The Acit, Ward -1, Thriuvalla (Hereinafter Called "The Ao") Vide Order Dated 28.09.2022 Passed U/S. 143(3) Of The Income Tax Act, 1961 (The 2 Jacob Thomas Act) At A Total Income Of Rs. 59,34,921/-. While Doing So, The Ao Made Disallowance Of Interest Expenditure Claimed Of Rs. 89,73,412/- U/S. 57 Of The Act. Accordingly, A Show Cause Notice Was Issued U/S. 274 R.W.S 270A Of The Act. The Appellant Had Failed O Respond To The Above Show Cause Notice. In The Circumstances The Ao Had Proceeded With Levy Penalty Of Rs. 57,24,630/- U/S. 270A By Holding That The Appellant Is Guilty Of Misreporting Income.

For Appellant: Shri Rajakannan, AdvocateFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 143(3)Section 270ASection 274Section 275(1)Section 57

Global Tradex Ltd. (Previously Known As Namco Steel Pvt. Ltd.), Mumbai vs. ACIT 7(1)(1) Mumbai, Mumbai

In the result, the appeal of the assessee bearing ITA No

ITA 6544/MUM/2024[2010-2011]Status: DisposedITAT Mumbai09 May 2025AY 2010-2011

Bench: BEFOR SHRI ANIKESH BANERJEE (Judicial Member)

For Appellant: Shri Ajay Tulsiyan & Ms. RuchiraFor Respondent: Shri Rajesh Sakhardande – Sr.AR
Section 143(3)Section 147Section 148Section 250Section 36(1)(iii)Section 57

Contai Rotary Community Welfare Trust, Meinipur vs. I.T.O., Ward 1(1), Exemption, Kolkata

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 52/KOL/2025[2018-19]Status: DisposedITAT Kolkata07 May 2025AY 2018-19

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmai.T.A. No.52/Kol/2025 Assessment Year: 2018-19 Contai Rotary Community Welfare Trust………………………..………….……Appellant Rathtala, P.O. Contai, Dist. Purba Medinipur, W.B. – 721401. [Pan: Aaatc7008C] Vs. Ito, Ward-1(1), Exemption, Kolkata…..……....….….. ……………….........…..Respondent Appearances By: Shri Miraj D. Shah, Ar, Appeared On Behalf Of The Appellant. Shri Raja Sengupta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : May 06, 2025 Date Of Pronouncing The Order : May 07, 2025 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 08.11.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. Brief Facts Of The Case Are That The Assessee Is A Charitable Trust & Registered U/S 12A Of The Act. The Assessee Filed Its Return Of Income For The Assessment Year 2018-19 By Declaring Nil Income Which Was Processed U/S 143(1) Of The Act. Subsequently, The Case Of The Assessee Was Selected For Scrutiny Under Cass To Examine Certain Issues Particularly The Expenses Claimed Under The Head Of ‘Income From Other Sources’. Notice U/S 143(2) Of The Act Was Issued To The Assessee Requiring Submission Of Certain Documents But No Response Was Received. Thereafter, A Notice U/S 142(1) Of The Act Was Issued Calling For Details Of Expenses Claimed U/S 57 Of The Act But The Assessee Again Failed To Respond. Thereafter, The Assessing Officer Issued Reminder To

Section 12ASection 142(1)Section 143(1)Section 143(2)Section 144Section 250Section 57

Shree Samprat Coop Hsg Soc Limited, Ahmedabad vs. Income Tax Officer Ward 3(3)(5), Ahmedabad

The appeal of the assessee is allowed for statistical

ITA 470/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad01 May 2025AY 2017-18

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokar

For Appellant: Shri Prashant Shrivastav, ARFor Respondent: Ms.Bhavnasingh Gupta, Sr.DR
Section 142(1)Section 143(2)Section 143(3)Section 57

Muktadevi Gramin Bigarsheti Sahakari Patsanstha Maryadit Gunjalwadi, Pune vs. ITO Ward 10(1), Pune

In the result, the appeal of the assessee is allowed

ITA 1842/PUN/2024[2020-21]Status: DisposedITAT Pune30 Apr 2025AY 2020-21

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.1841 & 1842/Pun/2024 निर्धारण वर्ष / Assessment Years : 2018-19 & 2020-21 Muktadevi Gramin Bigarsheti Sahakari Patsanstha Maryadit Gunjalwadi, At Post - Gunjalwadi, Taluka-Junnar, District - Pune 412401 Pan : Aaaam6151H अपीलार्थी / Appellant Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Ito, Ward-10(1), Pune Vs. प्रत्यर्थी / Respondent Shri Vilas R. Jadhav & Priyanka V. Jadhav Shri Ramnath P. Murkunde 04-02-2025 30-04-2025 आदेश / Order Per Astha Chandra, Jm : Two Appeals Filed By The Assessee Are Directed Against The Two Separate Order(S) Dated 02.07.2024 & 09.07.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)"] Pertaining To Assessment Years (“Ays”) 2018-19 & 2020-21. For The Sake Of Convenience Both The Appeals Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Department byFor Respondent: Date of hearing
Section 143(2)Section 143(3)Section 56Section 57Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Muktadevi Gramin Bigarsheti Sahakari Patsanstha Maryadit Gunjalwadi, Pune vs. ITO Ward10(1), Pune

In the result, the appeal of the assessee is allowed

ITA 1841/PUN/2024[2018-19]Status: DisposedITAT Pune30 Apr 2025AY 2018-19

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.1841 & 1842/Pun/2024 निर्धारण वर्ष / Assessment Years : 2018-19 & 2020-21 Muktadevi Gramin Bigarsheti Sahakari Patsanstha Maryadit Gunjalwadi, At Post - Gunjalwadi, Taluka-Junnar, District - Pune 412401 Pan : Aaaam6151H अपीलार्थी / Appellant Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Ito, Ward-10(1), Pune Vs. प्रत्यर्थी / Respondent Shri Vilas R. Jadhav & Priyanka V. Jadhav Shri Ramnath P. Murkunde 04-02-2025 30-04-2025 आदेश / Order Per Astha Chandra, Jm : Two Appeals Filed By The Assessee Are Directed Against The Two Separate Order(S) Dated 02.07.2024 & 09.07.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)"] Pertaining To Assessment Years (“Ays”) 2018-19 & 2020-21. For The Sake Of Convenience Both The Appeals Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Department byFor Respondent: Date of hearing
Section 143(2)Section 143(3)Section 56Section 57Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Sayeed Ahmed Nalband, Kurnool vs. ACIT., Circle-1, Kurnool

In the result, appeal of the assessee is allowed for statistical purposes

ITA 196/HYD/2025[2017-18]Status: DisposedITAT Hyderabad30 Apr 2025AY 2017-18

Bench: Shri Manjunatha G & Shri Ravish Sood

For Appellant: CA Mohammad AmmarFor Respondent: MS. Reema Yadav, Sr. AR
Section 142(1)Section 143(3)Section 250Section 57

Gobichettipalayam Rev Div Vao & Va Co-Op Thrift & Credit Society Ltd., Erode vs. ITO, Ward-2(1), Erode

The appeal stands partly allowed

ITA 3218/CHNY/2024[2021-22]Status: DisposedITAT Chennai30 Apr 2025AY 2021-22

Bench: Hon’Ble Shri Aby T. Varkey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.3217/Chny/2024 (िनधा'रण वष' / Assessment Year: 2020-21) & 2. आयकरअपील सं./ Ita No.3218/Chny/2024 (िनधा'रण वष' / Assessment Year: 2021-22) M/S Gobichettipalayam Income Tax Officer Rev Dev Vao & Va T&C Ward 2(1) बनाम/ Society Ltd. Erode 72, North Park Street Vs. Gobichettipalayam Taluk, Erode – 638452 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacag-0315-P (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" की ओर से/ Appellant By : Shri S. Bhupendran (Advocate) – Ld. Ar " थ" की ओर से/Respondent By : Ms. Gouthami Manivasagam (Jcit) – Ld. Sr. Dr सुनवाई की तारीख/Date Of Hearing : 29-04-2025 घोषणा की तारीख /Date Of Pronouncement : 30-04-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Assessee For Assessment Years (Ay) 2020- 21 & 2021-22 Have Identical Facts. First, We Take Up Appeal For Ay 2020-21 Which Arises Out Of An Order Passed By Ld. Addl. / Joint Commissioner Of Income Tax (Appeals)-1, Vishakhapatnam [Cit(A)] On 25-11-2021. The Sole Issue That Arises In The Appeal Is Claim Of Deduction

For Appellant: Shri S. Bhupendran (Advocate) – Ld. ARFor Respondent: Ms. Gouthami Manivasagam (JCIT) – Ld. Sr. DR
Section 22Section 5Section 57Section 80P(2)(a)Section 80P(2)(d)

Gobichettipalayam Rev Div Vao & Va Co-Op Thrift & Credit Society Ltd., Erode vs. ITO, Ward-2(1), Erode

The appeal stands partly allowed

ITA 3217/CHNY/2024[2020-21]Status: DisposedITAT Chennai30 Apr 2025AY 2020-21

Bench: Hon’Ble Shri Aby T. Varkey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.3217/Chny/2024 (िनधा'रण वष' / Assessment Year: 2020-21) & 2. आयकरअपील सं./ Ita No.3218/Chny/2024 (िनधा'रण वष' / Assessment Year: 2021-22) M/S Gobichettipalayam Income Tax Officer Rev Dev Vao & Va T&C Ward 2(1) बनाम/ Society Ltd. Erode 72, North Park Street Vs. Gobichettipalayam Taluk, Erode – 638452 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacag-0315-P (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" की ओर से/ Appellant By : Shri S. Bhupendran (Advocate) – Ld. Ar " थ" की ओर से/Respondent By : Ms. Gouthami Manivasagam (Jcit) – Ld. Sr. Dr सुनवाई की तारीख/Date Of Hearing : 29-04-2025 घोषणा की तारीख /Date Of Pronouncement : 30-04-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Assessee For Assessment Years (Ay) 2020- 21 & 2021-22 Have Identical Facts. First, We Take Up Appeal For Ay 2020-21 Which Arises Out Of An Order Passed By Ld. Addl. / Joint Commissioner Of Income Tax (Appeals)-1, Vishakhapatnam [Cit(A)] On 25-11-2021. The Sole Issue That Arises In The Appeal Is Claim Of Deduction

For Appellant: Shri S. Bhupendran (Advocate) – Ld. ARFor Respondent: Ms. Gouthami Manivasagam (JCIT) – Ld. Sr. DR
Section 22Section 5Section 57Section 80P(2)(a)Section 80P(2)(d)

Maravanthe Badakere Vyavasaya Seva Sahakari Sangha Ltd., Udupi vs. Income Tax Officer Ward-1 & Tps, Udupi

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 1983/BANG/2024[2020-21]Status: DisposedITAT Bangalore30 Apr 2025AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: Shri Mahesh R Uppin, AdvocateFor Respondent: Shri Subramanian .S, JCIT-DR
Section 143(3)Section 56Section 57Section 58Section 80PSection 80P(2)(a)

Maravanthe Badakere Vyavasaya Seva Sahakari Sangha Ltd, Udupi vs. Income Tax Officer, Ward-1 & Tps, Udupi

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 1982/BANG/2024[2018-19]Status: DisposedITAT Bangalore30 Apr 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: Shri Mahesh R Uppin, AdvocateFor Respondent: Shri Subramanian .S, JCIT-DR
Section 143(3)Section 56Section 57Section 58Section 80PSection 80P(2)(a)