Sangli Salary Earners Co Op Society Ltd. Vs ITO (ITAT Pune)
ITAT Pune held that deduction under section 80P of the Income Tax Act admissible on interest income received by co-operative society from deposits with co-operative banks and nationalized banks. Accordingly, appeal of the assessee is allowed.
Facts- This appeal is filed by the Assessee against the order of Commissioner of Income Tax(Appeals)[NFAC], passed under section 250 of the Income Tax Act, 1961 for A.Y.2020-21, dated 27.08.2025 emanating from Assessment Order u/s. 143(3) read with section 143(3) r.w.s 144B of the Income Tax Act, 1961 dated 26.09.2022. Assessee has mainly contested disallowance under section 80P of the Income Tax Act.
Conclusion- Hon’ble High Court of AP &TS held that Interest Income earned by investing Income derived from Business and Profession by a Co-Operative Society was eligible for deduction u/s.80P(2)(a) of the Act.
Held that in the case of the Assessee, the interest income of Rs.3,71,88,591/- was attributable to business of the assessee. Respectfully, following the decisions of Hon’ble Supreme Court and Hon’ble High Courts, we hold that Rs.3,71,88,591/- is eligible for deduction u/s.80P(2)(a)(i) of the Act. Accordingly, grounds of appeal raised by the Assessee are allowed. In the result, appeal of the assessee is allowed.
