Keshao Nagari Co-operative Vs ITO (ITAT Nagpur)
Summary: These three appeals filed by the assessee concerned Assessment Years 2017-18, 2020-21 and 2018-19 and arose from separate appellate orders passed by the Addl./JCIT(A)-4, Bengaluru and the National Faceless Appeal Centre (NFAC), Delhi. The common grievance in all the appeals was denial of deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961 in respect of interest income earned on deposits with nationalized banks and cooperative banks.
For AY 2017-18, ITA No.373/NAG/2026 was directed against the order dated 02.02.2026 arising from the assessment order dated 18.11.2019 passed under section 143(3). For AY 2020-21, ITA No.478/NAG/2026 arose from the order dated 09.03.2026 passed by NFAC, Delhi, arising from the assessment order dated 20.09.2022 under section 143(3) read with section 144B. For AY 2018-19, ITA No.532/NAG/2026 arose from the order dated 29.04.2026 passed by NFAC, Delhi, arising from the assessment order dated 09.03.2021 under sections 143(3), 143(3A) and 143(3B).
The Assessing Officer had denied the assessees’ claims of deduction under section 80P(2)(a)(i) on interest income earned on deposits with nationalized banks and other cooperative banks, and the Ld. CIT(A) had confirmed the additions.
Before the Tribunal, the assessee relied upon judicial precedents placed in the paper book. The Tribunal noted that the only issue requiring adjudication was the allowability of deduction under section 80P(2)(a)(i) on interest income received from deposits with nationalized banks and cooperative banks.
