2025 (3) TMI 2228

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssified as a primary agricultural credit co-operative society. It is engaged in the business of providing credit facility to the members. The return of income for AY 2017-18 was filed on 25.07.2018 declaring Nil income after claiming deduction under the provisions of section 80P of the Income Tax Act, 1961 (the Act). Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-1, Kasaragod (hereinafter called "the AO") vide order dated 19.12.2019 passed u/s. 143(3) of the Act at total income of Rs. 3, 54,680/- . While doing so, the AO denied deduction u/s. 80P(2)(d) of the Act in respect of interest earned from Kasaragod District Co-operative Bank of Rs. 4,04,680/- by holding that interests earned from co-....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rgotten and due to a bonafide omission failed to update the changes in the portal. This omission was not intentional or wilful. Hence the appellant did not get a proper opportunity for putting forth its contentions against the addition made in the assessment from the first appellate authority as well. This dismissal of the appeal came to the knowledge of the appellant when the authorized representative prepared the argument note and attempted to upload the same in the portal. Due to unfortunate circumstances response to the notice u/s 250 was not made and an order u/s 250 of I.T Act, 1961 was passed on 24-03-2023. An appeal for the same was to be filed on or before 23- 05-2023 as the appellate order is dated 24-03-2023 and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he income of the assessee. For getting deduction, in our considered view, the assessee must also establish that the interest income earned by the assessee is from a Co-operative Society. As a matter of fact, in the case on hand, there is no dispute that it is not from a Co-operative Society registered under Kerala Co-operative Societies Act. The interest income earned from District Co-operative Bank/State Co-operative Bank, in the facts and circumstances of the case, do come within Section 80P(2)(d). Therefore, the income constitutes income from other sources and the only eligible deduction is covered by Section 80P(2)(d) viz. Interest or dividend derived by the assessee from its investments with any other Co-operative Society. The source o....