AO cannot restrict cost of fund on ad-hoc basis without any legal basis: ITAT Bangalore

Sri Kanyakaparameshwari Vividoddesha Sahakara Sangha Niyamita Vs ITO (ITAT Bangalore) Introduction: The case of Sri Kanyakaparameshwari Vividoddesha Sahakara Sangha Niyamita vs. ITO, heard at ITAT Bangalore, revolves around the appeal against the CIT(A)’s order related to the Assessment Year 2011-12. The primary dispute involves the ad-hoc application of a 15% flat rate by the Assessing Officer (AO) on the cost of funds concerning interest income earned by the cooperative society. Detailed Analysis: Sri Kanyakaparameshwari Vividoddesha Sahakara Sangha Niyamita, a cooperative society, fil...