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

Shri Sharanabasaveshwar Credit Souhard Sahakari Niyamit, Halingali vs. Income Tax Officer, Ward and Tps

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

ITA 596/BANG/2024[2020-21]Status: DisposedITAT Bangalore09 Jul 2024AY 2020-21

Bench: Shri Chandra Poojari & Shri Keshav Dubey

For Appellant: Sri.Monish Sowkar, AdvocateFor Respondent: Sri.Ganesh R.Gale, Standing Counsel
Section 143(3)Section 19Section 250Section 56Section 57Section 80Section 80PSection 80P(2)(a)Section 80P(2)(d)

Mahaveera Credit Co-Operative Society Limited, Mangalore vs. Income Tax Officer, Ward-1(1), Mangalore

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

ITA 301/BANG/2024[2020-21]Status: DisposedITAT Bangalore08 Jul 2024AY 2020-21

Bench: Shri Chandra Poojari & Shri Keshav Dubeyassessment Year : 2020-21

For Appellant: Ms. Roopa Arun, AdvocateFor Respondent: Standing Counsel for Department
Section 250Section 58Section 80PSection 80P(2)(a)Section 80P(2)(d)

The Commercial Co.Op. Credit Soc. Ltd., Panchmahal vs. The Income Tax Officer, Ward-3(1)(2), Vadodara

The appeal of the assessee is allowed for statistical purposes

ITA 786/AHD/2023[2018-19]Status: DisposedITAT Ahmedabad05 Jul 2024AY 2018-19

Bench: MRS. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

For Appellant: Shri Dhinal Shah, ARFor Respondent: Shri Vipul Chavda, Sr DR
Section 250Section 56Section 57

M/S. Gonikoppal Primary Rural Agricultural Credit So-Operative Society Limited, Kodagu vs. Income Tax Officer, Ward-1, Madikeri

ITA 1016/BANG/2024[2018-19]Status: DisposedITAT Bangalore04 Jul 2024AY 2018-19

Bench: Shri Waseem Ahmed & Shri Prakash Chand Yadavgonikoppal Primary Rural The Income Tax Officer Agricultural Credit Co-Op. Ward - 1, Madikeri Society Ltd. Vs. Main Road, Gonikoppal Virajpet Taluk, Kodagu 571213 Pan – Aaaag1109M (Appellant) (Respondent) Assessee By: Smt. Sunaiana Bhatia, Ca Revenue By: Shri Chinmay Anand Jain, Jcit-Dr Date Of Hearing: 02.07.2024 Date Of Pronouncement: 04.07.2024 O R D E R Per: Prakash Chand Yadav, J.M. This Appeal Filed By The Assessee Challenges The Din & Order No. Itba/Nfac/S/250/2004-25/1064689295(1) Of The National Faceless Appeal Centre, Delhi (Cit(A)) Dated 07.05.2024 Passed Under Section 250 Of The Income Tax Act, 1961 (The Act) In Respect Of Assessment Year (Ay) 2018-19. 2. The Brief Facts Of The Case Are That The Assessee Is A Primary Agricultural Credit Co- Operative Society Registered Under The Karnataka State Co-Operative Societies Act, 1959 & Engaged In Providing Credit Facilities To Its Members. It Has Filed Its Return Of Income (Roi) On 13.09.2018 Declaring An Income Of Rs. 1,41,320/-. The Case Of The Assessee Was Selected For Scrutiny & Proceedings U/S. 143(3) Of The Act Were Initiated By The Assessing Officer (Ao).

For Appellant: Smt. Sunaiana Bhatia, CAFor Respondent: Shri Chinmay Anand Jain, JCIT-DR
Section 143(3)Section 250Section 80P(2)(a)

Primary Agricultural Credit Co-Operative Society Limited, Tumkur vs. Income Tax Officer, Ward 1 and Tps, Tumkur

ITA 947/BANG/2024[2017-18]Status: DisposedITAT Bangalore03 Jul 2024AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeyassessment Year : 2017-18

For Appellant: Shri Deepak Gunashekar, CAFor Respondent: Shri Ganesh R. Ghale, Standing Counsel
Section 2Section 57Section 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Shri Neelakanteshwar Pattin Sahakari Sangh Niyamit, Guledgudd vs. ITO W(1) Bagalkot, Bagalkot

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

ITA 600/BANG/2024[2021-22]Status: DisposedITAT Bangalore03 Jul 2024AY 2021-22

Bench: Shri George George K & Shri Waseem Ahmedr Assessment Year : 2021-22 M/S. Shri Neelakanteshwar Pattina Sahakari Vs. Ito, Sangh Niyamit Guledgudd, Ward – 1, No. Ward No.4 Colleg Road, Bagalkot. Guledgudd – 587 203, Karnataka. Pan : Aawas 7201 C Appellant Respondent Assessee By : S/Shri. Deepak Gunashekar, Ca, Prasanna N. Urala, Advocate Revenue By : Shri. Ganesh R Ghale, Standing Counsel. Date Of Hearing : 30.05.2024 Date Of Pronouncement : 03.06.2024

For Appellant: S/Shri. Deepak Gunashekar, CAFor Respondent: Shri. Ganesh R Ghale, Standing Counsel
Section 143Section 250Section 56Section 57Section 80PSection 80P(2)(a)Section 80P(2)(d)

The Mangode Service Co-Operative Bank Ltd., Palakkad vs. ITO, Palakkad

In the result, appeal of the assessee is partly allowed for statistical purposes and stay petition filed by the assessee is dismissed

ITA 700/COCH/2023[AY 2020-21]Status: DisposedITAT Cochin01 Jul 2024

Bench: Shri Chandra Poojari & Shri Soundararajan K.Assessment Year: 2020-21

For Appellant: Sri Suresh Kumar, A.RFor Respondent: Sri Ilaiyaraja K.S., Sr. D.R
Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Sri. Venkateshwara Developers, Bangalore vs. Deputy Commissioner of Income-Tax, Circle-7(1)(1), Bengaluru

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

ITA 197/BANG/2024[2018-19]Status: DisposedITAT Bangalore01 Jul 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavassessment Years : 2018-19

For Appellant: Shri S.Annamalai - AdvocateFor Respondent: Ms Neha Sahay- JCIT DR
Section 143(2)Section 57

Sunrise Souharda Pattina Sahakari Niyamitha, Tumakuru vs. Income Tax Officer, Ward-1, Tumkur

ITA 734/BANG/2024[2018-19]Status: DisposedITAT Bangalore28 Jun 2024AY 2018-19

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2020-21

For Appellant: Shri Ravishankar, Advocate
Section 143(2)Section 143(3)Section 234Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 8o

Bhadraiah Kallenahalli Dinesha, Mandya vs. Income Tax Officer, Ward 1, Mandya

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

ITA 231/BANG/2024[2020-2021]Status: DisposedITAT Bangalore28 Jun 2024AY 2020-2021

Bench: Smt Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2020-21

For Appellant: Shri Tharun Kothari, CAFor Respondent: Shri Srinath .S, JCIT-DR
Section 142(1)Section 143(2)Section 234ASection 250Section 44ASection 57

Hassan Co-Operative Society Limited, Hassan vs. Income Tax Officer, Ward-1, Hassan

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

ITA 909/BANG/2024[2017-18]Status: DisposedITAT Bangalore27 Jun 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Hassan Co-Operative Society Ltd. The Income Tax Officer #1, Society Road Ward -1 Gandhi Bazar Vs. Aayakar Bhavan Hassan 573201 2Nd Stage, Belur Road Pan – Aaaah7251F Hassan 573201 (Appellant) (Respondent) Assessee By: Shri Tarun Kothari, Advocate Revenue By: Shri Ganesh R. Gale, Standing Counsel Date Of Hearing: 20.06.2024 Date Of Pronouncement: 27.06.2024 O R D E R Per: Soundararajan K., J.M. This Appeal Is Filed By The Assessee Challenging The Order Of The Commissioner Of Income Tax (Appeals), Kanpur (Cit(A))Dated 28.02.2024 Passed Under Section 250 Of The Income Tax Act, 1961 (The Act) In Respect Of Assessment Year (Ay) 2017-18. 2. The Assessee Is A Co-Operative Society Registered Under The Provisions Of The Karnataka Co-Operative Societies Act & It Declared An Income Of Rs.9,98,941/- & Claimed Exemption Under Chapter Via Of The Act. The Assessing Officer (Ao) Had Disallowed A Portion Of The Claim On The Ground That The Same Are Not From The Investments Made With Any Other Co-Operative Societies & Therefore Not Eligible For Deduction Under Section 80P(2)(D) Of The Act. The Assessee Filed An Appeal Before The Cit(A) & Contended That The Income Earned By The Assessee Is Eligible For Deduction Under Section 2 Hassan Co-Operative Society Ltd. 80P(2)(A)(I) Of The Act Since The Assessee Had Invested The Surplus Funds By Way Of Temporary Deposit In Various Co-Operative Societies. The Cit(A) Decided The Appeal Ex-Parte & Dismissed The Same Since The Assessee Had Not Appeared Before Him In Spite Of Granting Five Occasions As Below: -

For Appellant: Shri Tarun Kothari, AdvocateFor Respondent: Shri Ganesh R. Gale, Standing Counsel
Section 2Section 250Section 57Section 80P(2)(d)Section 80P(2)(i)

Samrudh Vividoddesha Souharda Sahakari Niyamita, Shivamogga vs. Income-Tax Officer, Ward-5, Shivamogga

In the result, the appeal filed by the assessee stands allowed for statistical purposes

ITA 1085/BANG/2024[2017-18]Status: DisposedITAT Bangalore27 Jun 2024AY 2017-18

Bench: Smt. Beena Pillaiassessment Year : 2017-18 M/S. Samrudh Vividoddesha Souharda Sahakari Niyamita, The Income Tax 1St Floor, Belaguru Officer, Complex, Ward – 5, Durgigudi Main Road, Shivamogga. Shivamogga. Vs. Karnataka – 577 201. Pan: Aaals0413K Appellant Respondent

For Appellant: Shri Varun Bhat, CA
Section 142(1)Section 143(2)Section 2(19)Section 5(3)Section 80PSection 80P(2)(a)

Sri Siddeshwar Souharda Pattin Sahakari Niyamitha Vijayapura, Vijayapura vs. Income Tax Officer, Ward 1& Tps, Bijapur

In the result, the appeal filed by the assessee stands allowed for statistical purposes

ITA 1084/BANG/2024[2017-18]Status: DisposedITAT Bangalore27 Jun 2024AY 2017-18

Bench: Smt. Beena Pillaiassessment Year : 2017-18 M/S. Sri Siddeshwar Souharda Pattin Sahakari Niyamitha, The Income Tax Siddeshwara Road, Officer, Bijapur, Ward 1 & Tps, Vijayapura, Bijapur. Vs. Karnataka – 586 101. Pan: Aaabs1457M Appellant Respondent

For Appellant: Shri Varun Bhat, CA
Section 142(1)Section 143(2)Section 2(19)Section 5(3)Section 80PSection 80P(2)(a)Section 8o

The Masonic Fraternity of New Delhi, New Delhi vs. ITO Ward 52(1), New Delhi

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

ITA 3174/DEL/2023[2021-2022]Status: DisposedITAT Delhi27 Jun 2024AY 2021-2022

Bench: Ld. Cit(A) & Ld.Cit(A) Sustained The Addition With The Observation That The Registration Of Claim U/S 11 Of The Act Is Not Proper Within The Mandate Of Section 143(1) Of The Act.

Section 11Section 12ASection 143(1)Section 143(1)(a)

Deputy Commissioner of Income Tax, Circle 1(1) and Tps, Hubballi, C R Building, Navanagar vs. Sirsi Taluka Agricultural Produce Marketing Co-Operative Society, Sirsi

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

ITA 949/BANG/2024[2018-19]Status: DisposedITAT Bangalore26 Jun 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavassessment Year: 2018-19

For Appellant: NONEFor Respondent: Ms. Neha Sahay, D.R
Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Sarvodaya Credit Co Op Society Ltd Barkur, Udupi vs. Income-Tax Officer, Ward-1, Udupi

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

ITA 746/BANG/2024[2017-18]Status: DisposedITAT Bangalore25 Jun 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavsarvodaya Credit Co-Op. The Income Tax Officer Society Ltd. Ward -2, Udupi Car Street, Barkur Vs. Udupi 576210 Pan – Aaeas9576Q (Appellant) (Respondent) Assessee By: Smt. Sheetal Borkar, Advocate Revenue By: Ms. Neha Sahay, Jcit-Dr Date Of Hearing: 25.06.2024 Date Of Pronouncement: 25.06.2024 O R D E R Per: Prakash Chand Yadav, J.M. This Appeal Filed By The Assessee Challenges The Din & Order No. Itba/Nfac/S/2003-24/1061360577(1) Of The National Faceless Appeal Centre, Delhi (Cit(A)) Dated 22.02.2024 Passed Under Section 250 Of The Income Tax Act, 1961 (The Act) In Respect Of Assessment Year (Ay) 2017-18. 2. The Brief Facts Of The Case Are That The Assessee Society Filed Its Return Of Income(Roi) On 06.11.2017 Declaring Gross Total Income Of Rs.18,34,325/- & Net Income As Nil. Roi Filed By Assessee Was Selected For Scrutiny, After Issuing Statutory Notices. During The Course Of Assessment Proceedings The Ld. Assessing Officer (Ao) Treated Certain Income Of The Assessee As Income From Other Sources(Ios) & Without Giving The Benefit Of The Expenses Attributable Ios Assessed The Entire Income Under The Head ‘Income From Other Sources’. The Ao Further Added Rs. 1,90,000/- On Account Of The Provisions Made By Assessee With 2 Sarvodaya Credit Co-Op. Society Ltd. Respect To Employee’S Retirement Fund & Provision With Respect To Nps Fund Amounting To Rs.27,57,696/-.

For Appellant: Smt. Sheetal Borkar, AdvocateFor Respondent: Ms. Neha Sahay, JCIT-DR
Section 250Section 57Section 80PSection 80P(2)(a)

M/S. Karnataka Power Transmiss, Raichur vs. Income Tax Officer, Ward-1, Raichur

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

ITA 994/BANG/2024[2020-21]Status: DisposedITAT Bangalore24 Jun 2024AY 2020-21

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavassessment Years : 2020-21 M/S Karnataka Power Transmiss, Vs. The Income Tax Officer, Ward – 1, 71-71, Kptcl Employee Co-Op. Power Raichur. House, Station Road, Raichur – 584 102. Pan – Aaaak 4223 F Appellant Respondent Assessee By : Smt. Sunaiana Bhatia, C.A Revenue By : Shri Ganesh R Gale, Standing Counsel For Department Date Of Hearing : 20.06.2024 Date Of Pronouncement : 24.06.2024 O R D E R Per Shri Prakash Chand Yadavthe Present Appeal Of The Assessee Is Arising From The Order Passed By The Nfac, Delhi Dated 29/04/2024 In Din No. Itba/Nfac/S/ 250/2024-25/1064431034(1) For The Assessment Year 2020-21. 2. The Assessee Is Cooperative Society Registered Under The Karnataka State Co-Operative Society’S Act 1959. The Society Is Engaged In The Activity Of Carrying Of Business Of Providing Credit Facilities To Its Members. It Filed Its Return Of Income On 24/09/2020 Declaring Nil Income. The Case Of The Assessee Was Selected For Scrutiny After Issuing Statutory Notices. During The Course Of Assessment Proceedings, Page 2 Of 4 The Ao Observed That The Assessee Has Earned Interest Income Received From Cooperative Institutions Amounting To Rs.10,12,973/- & Dividend Income Of Rs.1,13,240/-. The Ao Relying On The Judgment Of Dcit Vs. Totagars Co-Operative Society Ltd, Has Held That Assessee Is Not Entitled For Deduction On The Amounts Of Interest Income As Well As Dividend Income. Accordingly, The Ao Assessed That Income Under The Head ‘Income From Other Sources’ & Made An Addition Of Rs 11,86,369/-.

For Appellant: Smt. Sunaiana Bhatia, C.AFor Respondent: Shri Ganesh R Gale, Standing Counsel for Department
Section 250(6)Section 57Section 80P(2)(a)Section 80P(2)(d)

Surabhi Souharda Credit Co-Operative Society Limited, Bengaluru vs. Income Tax Officer, Ward-7(2)(5), Bangalore

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

ITA 777/BANG/2024[2018-19]Status: DisposedITAT Bangalore24 Jun 2024AY 2018-19

Bench: IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU “C” BENCH, BENGALURU Before Shri Chandra Poojari (Accountant Member), Shri Soundararajan K. (Judicial Member)

For Appellant: Shri Kiran Kumar, AdvocateFor Respondent: Shri V. Parithivel, JCIT-DR
Section 143(3)Section 144BSection 250Section 57Section 80PSection 80P(2)(a)Section 80P(2)(d)

Amit Dhirajlal Doshi, Ahmedabad vs. The ACIT, Circle-1(1)(2), Ahmedabad

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

ITA 703/AHD/2024[2017-18]Status: HeardITAT Ahmedabad19 Jun 2024AY 2017-18

Bench: Ms. Suchitra Kambleassessment Year: 2017-18

Section 10Section 142(1)Section 143(2)Section 250Section 57

Karnataka Power Corporation Limited Employees Credit Co Op Society Limited, Mandya vs. Income Tax Officer, Ward-1 & Tps, Mandya

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

ITA 979/BANG/2024[2017-18]Status: DisposedITAT Bangalore19 Jun 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavassessment Year: 2017-18

For Appellant: Sri Shankare Gowda, A.RFor Respondent: Sri Ganesh R. Gale, Standing Counsel for department
Section 143(3)Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)