Case Law Details
Rethal Dudh Utpadak Sahkari Mandali Ltd. Vs ITO (ITAT Ahmedabad)
The case of Rethal Dudh Utpadak Sahkari Mandali Ltd. Vs ITO, adjudicated by the Income Tax Appellate Tribunal (ITAT) in Ahmedabad, presents a crucial judgment concerning the deductions under Section 80P(2)(d) of the Income Tax Act, 1961. ITAT’s ruling affirms that a Co-operative Society can claim Section 80P(2)(d) deductions for the interest income derived from a Fixed Deposit Receipt (FDR) with a Co-operative Bank.
Analysis:
The appellant, a Co-operative Society engaged in milk collection and supply, sought to avail the deductions under Section 80P of the Income Tax Act, 1961 for its interest income from an FDR with the Ahmedabad District Co-operative Bank. However, the Assessing Officer disallowed this claim, leading to an appeal before the CIT(A), which was eventually dismissed.
The appellant contended that the said bank is a registered Co-operative Society, and as per previous rulings of the Gujarat High Court, the income derived from investment with a Co-operative Society is eligible for deductions under Section 80P(2)(d). The appellant also drew parallels with another case (Zanu Dudh Utpadak Sahkari Mandali) where a similar claim was justified.
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