Hind Co-Operative Housing Society Ltd Vs ITO (ITAT Panaji)
Material Facts
The appellant assessee, Hind Co-Operative Housing Society Ltd, is a co-operative housing society. For the assessment year (AY) 2017-18, the assessee e-filed its return of income (ITR) on 31/03/2019, declaring a total income of NIL after claiming a deduction of ₹33,88,761/- under Chapter VI-A, Section 80P of the Income-tax Act, 1961 (‘the Act’).
During the virtual hearing, the Authorised Representative (AR) submitted that out of the total receipt, an amount of ₹33,88,761/- represented interest earned from co-operative banks (specifically Belgaum District Credit Co-op. Bank/BDCC, Saraswat Co-op. Bank, Tukaram Co-op. Bank, and Cosmos Co-op. Bank), which are registered co-operative credit societies, and that no portion of the interest was earned from a nationalised bank.
Procedural History
Assessment Proceedings:** The ITR was subjected to scrutiny to verify the admissibility of the Chapter VI-A deduction. The assessment was completed under Section 143(3) of the Act, denying the entire deduction claimed under Chapter VI-A. The Assessing Officer held that the interest income was ineligible as it was attributable to interest from Belgaum District Credit Co-op. Bank and interest from a national bank.
First Appeal:** The assessee challenged the denial of deduction before the National Faceless Appeal Centre (NFAC), Delhi. The NFAC passed an order (DIN & Order No. ITBA/NFAC/S/250/2022-23/1048023500(1)) on 15/12/2022 under Section 250 of the Act, dismissing the appeal and confirming the findings of the lower tax authority.
