Bhagyoday Sharafi Sahakari Mandli Ltd Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that interest income earned from deposits with co-operative banks is allowable as deduction under section 80P(2)(d) of the Income Tax Act. Accordingly, the appeal is allowed.
Facts- The assessee is a Cooperative Society engaged in the business of providing credit facilities to its members on which it earned and incurred interest income from banks and members. For the Asst. year 2017-18, assessee filed its Return of Income on 30-10-2017 declaring total income of Rs.31,291/-. The return was taken for scrutiny assessment. AO treated the interest income from banks and Gujarat Electricity Board as income from other sources and rejected the claim of deduction u/s. 80P. CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- The Hon’ble Gujarat High Court in the case of Katlary Kariyana Merchant Sahkarı Sarafi Mandali Ltd. ACIT reported in (2022) (40 com 602(Guj. HC) vide order dated 04.01.2022 has decided the issue in favour of Revenue but by order in MA dated 26.04.2024 in R/Special Civil Application No. 20585 of 2019, the aforesaid order dated 04.01 2022 was modified by Hon’ble Gujarat High Court and this issue stood decided in favour of the tax-payer.
