2026 (5) TMI 46

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is filed for Assessment Year 2017-18 against the Appellate Order passed by the National Faceless Appeal Centre, Delhi (the Ld. CIT(A)) on 24.10.2025 wherein the Appeal filed by the Assessee against the Assessment Order passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) by the Assistant Commissioner of Income Tax, Circle - 1, Davanagere [ the ld. AO ] was partly allowed. The Assessee is aggrieved with the same and has preferred this Appeal raising several grounds of appeal. 3. The challenge is to the provisions of section 251 of the Act being the enhancement made by the Ld. CIT(A). 4. The briefly stated facts shows that Assessee is a credit co-operative society registered under the Karnataka SouhardaSahakari Act, 1997. It filed i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....stered under Karnataka SouhardaSahakari Act, 1997 would be construed as co-operative society within ambit of section 2(19) and thus, would be entitled to claim benefit of section 80P of the Act as a co-operative society. The Ld. Assessing Officer denied the deduction only for the reason that Assessee is not registered under the Karnataka State Co-operative Societies Act, 1959. Thus, in view of the decision of the Hon'ble Karnataka High Court, the stand of the Ld. Assessing Officer is not correct. As the Assessee is not registered under the Karnataka State Co-operative Societies Act, the deduction u/s. 80P(2)(a)(i)of the Act was denied to the Assessee. The expenditure with respect to the 30% ofRs. 2,30,695/- being advertisement expenseswas a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ann.com 447 (Karnataka)/[2015] 230 Taxman 309 (Karnataka)[28-10-2014]wherein members co-operative society engaged into the business of providing credit facilities to its members as well as non-members and income attributable from such business is allowable for deduction u/s. 80P(2)(a)(i) of the Act. 9. Further, the disallowance made for non-deduction of tax would increase the income of the Assessee which is attributable to the business of providing credit facilities to its members. Therefore, any disallowance made by the Ld. Assessing Officer for non-deduction of tax would further increase the income and simultaneously also increase the deduction. In view of the above facts, the Appeal filed by the Assessee is allowed. 10. The facts f....