80P Deduction Denied as Bank FD Interest Lacked Nexus with Credit Facilities: ITAT Chandigarh

Malan Co-operative Agricultural Service Society Vs ITO (ITAT Chandigarh) The appeal before the Income Tax Appellate Tribunal, Chandigarh Bench concerned the allowability of deduction under Section 80P(2)(a)(i) of the Income-tax Act, 1961, for Assessment Year 2022–23. The assessee, a co-operative agricultural service society registered in 1957, had claimed a deduction of ₹37,47,927 after declaring nil income. Its stated objects included encouraging thrift among members, accepting deposits, and providing short- and medium-term credit facilities for agricultural purposes. During scrutiny, the...