Case Law Details
SKF India Employee Co-Operative Credit Society Limited Vs PCIT (ITAT Pune)
In a recent tax dispute, the Income Tax Appellate Tribunal (ITAT) of Pune delivered a crucial judgment. This judgment pertains to the SKF India Employee Co-Operative Credit Society Limited’s appeal against the Principal Commissioner of Income Tax (PCIT), Pune, for the assessment year 2018-2019. The case centers around the claim of the Co-Operative Society on interest received from Co-Op. Banks as a deduction under section 80P(2) of the I. T. Act, 1961.
The tribunal heard both parties, and the details of the case emerged in the course of the hearing. It was evident that the appeal didn’t necessitate an in-depth exploration of the factual matrix. The PCIT had termed the Assessing Officer’s regular assessment as erroneous, which allegedly caused prejudice to the interest of the revenue. This occurred because the officer had allowed the section 80P deduction claim representing interest derived from deposits made in various cooperative banks.
Following a series of arguments and considerations, the tribunal found merit in the assessee’s argument. The tribunal’s order relied on a recent ruling (Lokmangal Nagri Sahakari Path Sanstha Maryadit, Solapur vs. PCIT-4, Pune in ITA.No.231/PUN./2022 decided on 29.11.2022). Consequently, the tribunal overturned the PCIT’s revision directions and restored the Assessing Officer’s regular assessment.
The case presented a compelling scenario where the interest income derived from cooperative banks and other institutions by cooperative societies can be claimed as a deduction under the Income Tax Act. The judgment reflects the ITAT’s support for cooperative societies in financial disputes.
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