2026 (3) TMI 371

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....pondent : Ms. R. Kavitha, Addl. CIT ORDER PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 30.09.2025 for Assessment Year (AY) 2020-21. 2. The assessee is a cooperative society and fi....

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....)(d) of the Act, whereas the A.O while disallowing has held that the assessee is not entitled to claim deduction u/s. 80P(2)(a)(i) of the Act. The Ld. AR in this regard drew our attention the submissions made before the A.O stating that the deduction towards interest is claimed by the assessee u/s. 80P(2)(d) of the Act which is legally correct (page 1 of paper book). The ld AR also drew our attent....

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....e fund but has denied the deduction claimed against the interest on investments to the tune of Rs.12,47,647. From the perusal of the orders of the lower authorities we notice that the deduction is denied stating that the assessee is not entitled for deduction u/s.80P(2)(a)(i). Therefore we see merit in the contention of the assessee that the deduction has been denied on the incorrect premise that ....

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....h function at par with commercial banks by lending money to the general public. In the light of the above decision, we are of the considered view that section 80P(4) becomes relevant only where the assessee itself is a co-operative bank claiming deduction under section 80P, which is admittedly not the case in the present appeal. Therefore, the embargo contained in section 80P(4) has no application....