Kamran Vikas Co-op. Credit Society Ltd Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that interest received from co-operative bank is eligible for deudciton under section 80P of the Income Tax Act. Thus, disallowance made u/s. 80P deleted.
Facts- The assessee is a cooperative credit society engaged in providing credit facility to its members. The original assessment for A.Y. 2013-14 was completed u/s 143(3) of the Act on 16.12.2015 at total income of Rs.1,590/-. Subsequently the AO noticed that the assessee had derived FD interest of Rs.34,54,048/- from The Sabarkantha District Cooperative Bank Ltd. in respect of which deduction u/s 80P of the Income Tax Act, 1961 was claimed. The AO was of the opinion that this interest income earned from the cooperative bank was not attributable to the activities of the society and was also not derived from a cooperative society. Therefore, the deduction u/s 80P of the Act was wrongly claimed in respect of this interest income. AO, therefore, initiated proceeding u/s 147 of the Act by issue of notice u/s 148 dated 19.03.2019. Re-assessment was completed u/s 143(3) r.w.s 147 of the Act on 29.06.2019 and the deduction of Rs.24,48,040/- claimed u/s 80P in respect of interest income from The Sabarkantha District Cooperative Bank Ltd. was disallowed by the AO.
