2025 (3) TMI 1570

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....nd Desai ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 30.03.2024 which is arising out of the assessment order u/s 143(3) r.ws. 144B of the Act for Assessment Year 2020-21 framed on 22.09.2022 by the ITO, NFAC. 2. The sole grievance of the assessee that Ld. CIT(A)/NFAC erred in confirming the disallowanc....

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....Assessing Officer also observed that the assessee has invested surplus funds with cooperative banks and other banks which are not eligible for deduction and such interest income from such investments are not allowable u/s 80P(2)(d) of the Act. Ld. Assessing Officer taking into consideration the fact that the assessee has admitted nominal/associate members who do not have voting rights, the princip....

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....d 03.05.2024. 6. On the other hand, Ld. DR supported the orders of the lower authorities. 7. We have heard rival contentions and perused the records placed before us. We observe that the assessee which is a co-operative society has declared income of Rs.3,92,570/- after claiming deduction u/s 80P at Rs. 1,33,50,608/-. We also observe that during the year the assessee society has earned inter....

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....efore, in view of the above, the interest income from cooperative banks at Rs. 4,15,27,813/- is eligible for deduction u/s 80P(2)(d) of the Act. However, deposit with MSEDCL at Rs. 1,09,529/-, Ld. Counsel for the assessee failed to furnish any judicial precedent, therefore, disallowance to the extent of Rs. 1,09,529/- is hereby confirmed. In view of the above, against the total disallowance u/s 80....