Case Law Details
Deepa Credit Co-operative Society Ltd. Vs ITO (ITAT Bangalore)
Introduction: The recent appeal at ITAT Bangalore, Deepa Credit Co-operative Society Ltd. vs ITO, revolves around the Assessment Year 2017-18. The case delves into the intricacies of interest income and the associated deduction claims made by the cooperative society. The appeal challenges the CIT(A)’s order dated 16.08.2023, passed under Section 250 of the Income Tax Act, 1961.
Detailed Analysis:
1. Background and Assessment: Deepa Credit Co-operative Society, registered under the Karnataka Co-operative Societies Act, filed its return of income for the Assessment Year 2017-18. The AO completed the assessment, disputing the deduction claim under section 80P and restricting the claim under section 80P of the Act concerning interest income from cooperative banks and scheduled banks.
2. CIT(A)’s Confirmation: The First Appellate Authority (CIT(A)) affirmed the AO’s view, holding that interest income from investments with cooperative banks/scheduled banks falls under the head ‘income from other sources.’ The nature of income cannot be altered to ‘business income.’
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