Cooperative society wins Section 80P(2)(a)(i) deduction despite AOP status classification by revenue authorities

ITAT Jaipur allowed the appeal, directing the AO to grant deduction u/s 80P(2)(a)(i) to a cooperative society. The revenue denied the deduction in intimation u/s 143(1), claiming it was incorrectly made and the society's status showed as AOP rather than cooperative society. The tribunal held that given the society's object of lending money to members, the deduction was correctly claimed. The AOP status does not disqualify the claim as section 2(31) definition of "person" doesn't require separate cooperative society status. The denial without specifying how the claim was incorrect was deemed improper.

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Issues Involved:
1. Validity of the order u/s 154/143(1)(a).
2. Disallowance of deduction claimed u/s 80P(2)(a)(i).
3. Alleged non-filing of certain details.

Summary of Judgment:

Issue 1: Validity of the Order u/s 154/143(1)(a)
The assessee challenged the validity of the order u/s 154/143(1)(a) dated 15.04.2021, arguing it was "bad in law and on facts of the case, for want of jurisdiction." The Tribunal noted that the assessee had filed a rectification application under section 154, which was rejected by ADIT, CPC, Bengaluru, on the grounds of incorrect filing of Schedule VIA and incorrect status other than a cooperative society.

Issue 2: Disallowance of Deduction Claimed u/s 80P(2)(a)(i)
The primary issue was the disallowance of deduction claimed u/s 80P(2)(a)(i) on account of interest income. The Tribunal observed that the assessee, a credit cooperative society, had correctly claimed the deduction in the ITR filed. The Tribunal noted that the assessee's status as an AOP (Association of Persons) does not disqualify it from claiming the deduction under section 80P(2)(a)(i). The Tribunal found the revenue's reasons for denial to be "purely based on surmises and conjecture." The Tribunal directed the AO to allow the claim of the assessee as made in the ITR.

Issue 3: Alleged Non-Filing of Certain Details
The Tribunal addressed the allegation that the assessee did not file certain details correctly. It was noted that the assessee had filed its e-Return of Income correctly and fulfilled the required conditions applicable to a cooperative society. The Tribunal found no specific evidence from the revenue to support the claim that the details were incorrectly filed.

Conclusion:
The Tribunal allowed the appeal of the assessee, stating that the deduction claimed u/s 80P(2)(a)(i) was valid and should be allowed. The grounds raised by the assessee were found to be justified, and the orders of the lower authorities were not sustainable.

Order:
The appeal of the assessee is allowed.

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