2025 (8) TMI 963

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....ax Act, 1961 [the Act] dated 16.12.2019 by the ITO, Ward 3, Udupi [ld. AO] was partly allowed. 2. The assessee is aggrieved and preferred this appeal raising the following grounds of appeal:- "1. The learned Commissioner of Income Tax (Appeals) has erred not only on facts but also in law and other judicial authorities by disallowing the deduction claimed under section 80P(2)(d) of Rs. 13,08,189/- in respect of whole of the income by way of interest derived by the appellant co-operative society from its investments with other co-operative societies. 2. The learned Commissioner of Income Tax (Appeals) has erred not only on facts,.7: but also in law and other judicial authorities by disallowing the deduction claimed under ....

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....e derived from its investment with other cooperative societies and further the addition is made of Rs. 7,214 to the total income of the assessee. 4. Ground Nos.3 to 7 are general and are dealt with in other grounds, therefore same are dismissed. 5. The brief facts of the case show that assessee is a registered as a cooperative society vide Certificate dated 26.11.2012. It filed its return of income on 27.10.2017 declaring gross total income at Rs. 18,33,997 claiming the same as deduction u/s. 80P(2)(a)(i) of the Act deriving total income at Nil. The case was selected for limited scrutiny and notices were issued. 6. The facts show that assessee was issued a show cause notice on 30.10.2019 for the reason that it is doing banking busi....

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....wise the addition will increase the income of assessee. The ld. AO rejected the same and made addition of Rs. 1,32,635 and also did not grant deduction u/s. 80P of the Act while framing assessment order u/s. 143(3) of the Act dated 16.12.2019. 8. The assessee preferred appeal before the ld. CIT(A) who passed an order on 31.12.2024. The ld. CIT(A) passed a 42 page order wherein in para 5 to 16 he held that assessee is not eligible for deduction u/s. 80P of the Act in view of the decision of the Hon'ble High Court in the case of Totagars Co-op. Sale Society as well as decision of the Hon'ble Supreme Court. Deduction u/s. 80P(2)(d) of the Act of Rs. 13,15,403 being interest from other co-op. societies was denied. With respect to addition of....