2024 (6) TMI 1287

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....tion 143 (1) of The Income Tax Act, 1961 dated 19/10/2022 passed by the central processing Centre Bangalore [ the ld. AO ] wherein the assessee was denied the benefit of deduction under section 80P(2)(d) of the act of Rs. 510,497/- and on appeal it was confirmed. 2. Thus, the only grievance of the assessee is that the CIT - (A) erred in confirming the action of The Assistant Director of Income Tax, central processing Centre in denying the deduction of Rs. 510,497/- under section 80P(2)(d) of the act. 3. Briefly, the fact is that assessee is a cooperative housing society. It filed its return of income on 18/12/2021 at a total income of Rs. 1,812,150/-. The assessee has claimed deduction under chapter VIA of the act of Rs. 560,497/- whe....

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....d) of the act. ii. that there is no provision u/s 143 (1) of The Act to make an adjustment with respect to the disallowance under section 80P(2)(d) of the act , it is also not an incorrect claim and therefore the adjustment itself is invalid. iii. in the case of the assessee for assessment year 2020 - 21 identical issues arose in ITA number 331/M/2023 wherein by order dated 27/4/2023 the assessee was allowed the deduction under section 80PD of the act. iv. that the decision relied upon by the learned CIT - A of Kerala State cooperative agricultural and rural development bank Ltd of the honourable Supreme Court in (2023) (458 ITR 384) (SC) is in fact in favour of the assessee. Even otherwise that was the case of a ....

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.... the assessee was assessed at Rs. 2,322,650/-. 10. Thus, the first issue that arises before us is whether such an adjustment can be made under the provisions of section 143 (1) of the act or not. We find that under the provisions of section 143 (1) of the act following adjustments are permitted:- (a) the total income or loss shall be computed after making the following adjustments, namely:-   (i) any arithmetical error in the return; ^68[***]   (ii) an incorrect claim if such incorrect claim is apparent from any information in the return;   ^69[(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub....

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....essee has placed the sum with the Maharashtra State cooperative bank which is also cooperative society as per Maharashtra cooperative societies act. Therefore, in terms of the provisions of section 80(P)(2)(d) read with the provisions of section 2(19) of the income tax act where the definition of cooperative societies is provided and further reading the same with respect to the Maharashtra cooperative societies act, it is apparently clear that the cooperative banks are also the cooperative societies under that act. Therefore, the assessee is eligible for a deduction of Rs. 510,497/- earned by the assessee cooperative society from the investment made in another cooperative society i.e., Maharashtra state cooperative Bank Limited u/s 80P(2)(d....