Coal Mines Workers Credit Co–operative Society Ltd. Vs ITO (ITAT Nagpur)
ITAT Nagpur held that interest income earned by co-operative society from its investments made with other co-operative bank is eligible for deduction under section 80P(2)(a)(i) of the Income Tax Act. Accordingly, appeal of the assessee allowed.
Facts- The present appeal is preferred by the assessee mostly contesting that CIT(A) was not justified in affirming the order passed by the Assessing Officer by disallowing the deduction claimed by the assessee Co– operative Society under section 80P(2)(a)(i) of the Income Tax Act, 1961.
Conclusion- Held that interest income earned by the assessee trust is eligible for deduction under section 80P(2)(a)(i) / 80P2(d) of the Act. Further, also held that the interest income of Rs. 19,69,016, earned by the assessee Co–operative Society from their investments made with Co–operative Bank is an income derived by it from its business activities which is assessable under the head “Income From Business” and not under the head ”Income From Other Sources”.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
These appeals by the assessee are against the impugned orders of even dated 16/11/2023, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2013–14 and 2018–19.
