ITO Vs Hitkari Vidyalaya Sahkari Shiksha Samiti Limited (ITAT Jaipur)
In the case of ITO Vs. Hitkari Vidyalaya Sahkari Shiksha Samiti Limited, ITAT Jaipur reviewed the dispute over the applicability of Section 80P(2)(d) of the Income Tax Act. The Revenue contested the deletion of a disallowance by the CIT(A) concerning Rs. 1,45,12,666/-, arguing that interest income, despite being from a cooperative society operating as a bank, did not qualify for deduction under Section 80P(2)(d). The case hinged on whether such interest income fell under the exemption provided for primary agricultural credit societies. Citing precedents, including the Rajasthan High Court’s decision in PCIT vs. M/s Bhilwara Zila Dugdh Utpadak Sahakari Sangh Ltd., ITAT affirmed that Regional Rural Banks, deemed cooperative societies under Section 22 of the Regional Rural Banks Act, should receive the same treatment. The Tribunal upheld the CIT(A)’s decision, aligning with earlier rulings and dismissing the Revenue’s appeal. This consolidated stance underscores the interpretation of cooperative society status under tax law, particularly affecting deductions related to banking activities under Section 80P(2)(d).
Assessee was represented by Sh. Sidharth Ranka, Adv. & Sh. Sorabh Harsh, Adv
FULL TEXT OF THE ORDER OF ITAT JAIPUR
These two appeals are filed by the revenue and are arising out of the order of the National Faceless Appeal Centre, Delhi dated 01/09/2023 [here in after ‘NFAC’) ] for assessment years 2017-18 & 2020-21 which in turn arise from the order dated 26.12.2019 & 20.09.2022 passed under section 143(3) of the Income Tax Act, by AO.
