Kolhapur ZPKSPSM Vs ITO (ITAT Pune)
The assessee appealed against the order dated 21.11.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, arising from the assessment order passed under Section 143(3) of the Income-tax Act, 1961 dated 24.02.2021 for Assessment Year 2018-19.
The principal dispute before the Tribunal was the denial of deduction under Section 80P in respect of interest earned from investments with co-operative banks. The assessee challenged the disallowance of deduction under Section 80P(2)(a)(i) as well as the denial of the alternate claim under Section 80P(2)(d) for interest earned from co-operative banks amounting to ₹9,14,916. The assessee requested that the appeal be decided based on written submissions filed on 21.02.2025.
The Revenue supported the orders of the Assessing Officer and the CIT(A).
The Tribunal observed that the assessee had been denied deduction under Section 80P(2)(a)(i) in respect of ₹9,14,916, comprising interest, dividend from co-operative banks and form fees. It further noted that the assessee had alternatively claimed deduction under Section 80P(2)(d).
From the written submissions, the Tribunal found that out of the total amount of ₹9,14,916, a sum of ₹9,12,640 represented interest and dividend received from Kolhapur District Central Co-operative Bank, Kanista Sevakanchi Sahakar Pat Sanstha Ltd., and NKGSB Co-operative Bank. This amount comprised interest of ₹8,72,600 and dividend of ₹40,040.
