Sumel 6 Commercial Co-op. Service Society Limited Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that co-operative society is entitled for deduction under section 80P(2)(d) of the Income Tax Act for funds deposited in co-operative banks. Accordingly, action of AO set aside.
Facts- The assessee is a Co-operative Service Society Limited. AO observed that the assessee was in receipt of interest income from Time Deposit obtained from the Kalupur Commercial Co-operative Bank Limited and Kankaria Maninagar Nagrik Sahakari Bank Limited amounting to Rs.1,01,92,937/-. The assessee claimed this amount as deduction under Chapter-VIA u/s. 80P(2)(d) of the Act. However, AO made addition of Rs.1,01,92,937/- thereby disallowing the claim of deduction u/s. 80P of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee Society is entitled for the deduction under Section 80P(2)(d) of the Act as the funds were deposited in the Co-operative Banks which were part of and registered under State Co-operative Societies Act. Therefore, the disallowance made by the Assessing Officer under Section 80P(2)(d) of the Act confirmed by the CIT(A) is not justified.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the Assessee against order dated 22.09.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2020-21.
