2025 (9) TMI 495

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....of the Ld.CIT(A) dismissing the appeal filed by the assessee against the adjustment made by the CPC u/s.143(1) of the Income Tax Act, 1961 (hereinafter in short 'the Act') intimation passed by the CPC disallowing the deduction claimed u/s.80P(2)(d) of the Act to the tune of Rs. 5,47,247/-. 3. Brief facts are that the assessee which is a cooperative society has filed its Return of income (RoI) for AY 2021-22 on 20.12.2021 declaring total income at Rs. 1,82,210/- after claiming deduction under Chapter VIA of the Act amounting to Rs. 11,49,812/- being deduction under various sub-clause of sec.80P(2) of the Act, which was processed by CPC u/s.143(1) of the Act on 19.10.2022 determining total income at Rs. 7,29,460/- after allowing deduction ....

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....ns of sec.80P of the Act as well as sub-section 4 of section 80P of the Act which the Ld.CIT(A) referred to justify dismissing the appeal of the assessee which reads as under: Deduction in respect of income of co-operative societies. 80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely:- (d) in respect of any income by way of interest or dividends derived by the co....

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....rned by assessee from another Cooperative Society, which in this case a Co-operative Society/Bank is eligible u/s.80P(2)(d) of the Act; unless the Ld.CIT(A)/AO could show that those Co-operative Banks (from whom assessee earned interest on its deposits) possess a license from the RBI to do banking business with the public; and for such a proposition, we rely on the decision of the Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. & Othrs. V. CIT reported in [2021] 431 ITR 1 (SC); and since, it is not the case of the Ld.CIT(A) that the Co-operative Societies/Bank from whom the assessee has derived interest had possessed license from RBI to do banking business, we are unable to uphold the impugned action of the Ld.C....