Ch Kittur Taluk Prathmik Shala Shivshak Kiyat Pattin Sahakar Sangh NY Vs ITO (ITAT Panaji)
Summary: The assessee, an AOP, filed its return for AY 2021-22 declaring nil income after claiming a deduction of ₹35.20 lakh under Section 80P(2)(a)(i). Based on information appearing in the tax records, the Assessing Officer concluded that the assessee had earned interest from Canara Bank and treated ₹10.91 lakh as bank-interest income, which was subsequently confirmed by the CIT(A). Before the Tribunal, the assessee relied upon Form 26AS and its Canara Bank statement to contend that the transaction did not represent interest income, but reflected TDS under Section 194N/194NF on cash withdrawals, and not TDS under Section 194A on interest. The Panaji ITAT found that Form 26AS did not disclose TDS under Section 194A for interest from Canara Bank, the deduction was under Section 194N in relation to cash withdrawals, the bank statement corroborated the assessee’s explanation and the Revenue did not controvert the documentary evidence. Accordingly, the Tribunal reversed the CIT(A)’s finding and deleted the addition of ₹10,90,787, holding that the amount was not interest income earned from Canara Bank. The appeal was allowed.
The assessee, an AOP, filed its return for AY 2021-22 declaring nil income after claiming a deduction of ₹35.20 lakh under Section 80P(2)(a)(i).
