ACIT Vs Zila Sahkari Bank Private Limited (ITAT Delhi)
ITAT Allows Deduction Under Section 80P(2)(d) Because Dividend Was Received From Cooperative Societies
SEO Description: The Tribunal held that dividend received from cooperative societies qualified for deduction under Section 80P(2)(d), despite the assessee originally claiming exemption under Section 10(34). Relying on earlier decisions in the assessee’s own case, it deleted the sustained addition.
The Income Tax Appellate Tribunal (ITAT), Delhi, decided the Revenue’s appeal and the assessee’s cross objection arising from the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC) for Assessment Year 2016-17. The Revenue challenged the deletion of an addition of Rs. 2,12,74,240, while the assessee challenged the sustenance of an addition relating to dividend income.
The assessee, a cooperative society engaged in banking activities, filed its return declaring total income of Rs. 6,59,93,730 and claimed exemption on dividend income of Rs. 2,22,03,400 under Section 10. During scrutiny assessment under Section 143(3), the Assessing Officer made two additions aggregating Rs. 4,34,77,640: (i) disallowance of exemption claimed on dividend income of Rs. 2,22,03,400, and (ii) addition of Rs. 2,12,74,240 under Section 69 read with Section 115BBE on the ground that fixed assets were overvalued due to the manner in which depreciation was reflected in the income tax return.
