Case Law Details
Janta Adarsh Co-operative Thrift & Credit Society Ltd Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi, in the case of Janta Adarsh Co-operative Thrift & Credit Society Ltd Vs ITO, dealt with an important issue regarding the eligibility of a co-operative society to claim deduction under Section 80P(2)(d) of the Income Tax Act, 1961, on the interest earned from deposits made with a co-operative bank. This consolidated order addresses the appeals for the assessment years 2018-19 and 2020-21.
Background of the Case
The assessee, Janta Adarsh Co-operative Thrift & Credit Society Ltd., filed its return of income declaring NIL income for the years under consideration. The return was processed, and statutory notices were issued. The Assessing Officer (AO) observed that the assessee had claimed a deduction of INR 43,29,747 under Section 80P. However, the AO disallowed the deduction for INR 7,60,197, which was interest income derived from deposits in banks/co-operative banks, on the grounds that this income did not arise from the business activities of the assessee.
Grounds of Appeal
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