BASUDEBPUR UTTARBARH SAMABAY KRISHI UNNAYAN SAMITY LTD.,PURBA MEDINIPUR V. A.C.I.T., CIR - 27(2) NOW CIR - 27(1), HALDIA

ITA 1850/KOL/2025

AI Insights

The case involves an appeal by Basudebpur Uttarbarh Samabay Krishi Unnayan Samity Limited against an order from the Addl./JCIT(A)-13, Mumbai, for the assessment year 2015-2016. The primary issue in the appeal was the addition of Rs. 56,96,933 representing proportionate interest on investment in excess of the capital and reserve surplus, which was calculated at Rs.4,86,563. The assessee contested the addition, arguing that they had not earned such interest and were entitled to a deduction under section 80P(2)(a)(i) of the Income Tax Act. The ITAT, after reviewing the profit and loss account, agreed with the assessee and deleted the addition.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829159 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Kolkata
• Assessment Year: misc
• Appeal Filed On: 19-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARY
• Assessee Lawyers: SOUMITRA CHOUDHARY
• Keywords: Condonation of delay; Proportionate interest

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.1850/KOL/2025 (नििाारण वर्ा / Assessment Year :2015-2016) Basudebpur Uttarbarh Samabay Krishi Unnayan Samity Limited, PO Basudebpur, PS Egra, District-Purba Medinipur, West Bengal-721452 Vs ACIT, Circle-27(2), Haldia PAN No. :AABAB 3986 C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Soumitra Choudhary, AR राजस्व की ओर से /Revenue by : Shri Abhijit Adhikary, Sr. DR सुनवाई की तारीख / Date of Hearing : 13/01/2026 घोषणा की तारीख/Date of Pronouncement : 13/01/2026 आदेश / O R D E R This is an appeal filed by the assessee against the order dated 24.07.2024, passed by the ld.Addl./JCIT(A)-13, Mumbai, for the assessment year 2015-2016. 2. The appeal of the assessee is filed belatedly by 323 days. In this regard, the assessee has filed an application for condonation of delay supported with an affidavit stating therein sufficient reasons for condonation of delay. Ld.Sr. DR has also not objected to condone the delay. Considering the prayer of the assessee in the application and the sufficient reasons for delay, I condone the delay of 323 days in filing the appeal and the appeal of the assessee is admitted for hearing. 3. It was submitted by the ld. AR that the only issue in the assesse’s appeal is regard to the addition representing proportionate interest of investment in excess of the capital and the reserve surplus to the extent of Printed from counselvise.com ITA No.1850/KOL/2025 2 Rs. 56,96,933/-. It was the submission that the interest has been calculated at Rs.4,86,563/- and the addition has been made denying the assessee the benefit of deduction u/s. 80P (2)(a)(i) of the Act. It was the submission that in first place the assessee’s has not owned such an interest, in the second place even if the interest is to be added, the assessee’s is entitled to the deduction proceedings of 80P(2)(a)(i) of the Act in the respect of said interest. It was primarily submitted that the addition as made by the AO in respect of the proportionate interest may be deleted. 4. In reply the Ld.Sr. DR vehemently supported the order of the AO and the JCIT(A). 5. I have considered the rival submissions. A perusal of the profit and loss account of the assessee clearly shows that the assessee has not earned the interest of Rs. 4,86,563/-. The AO has calculated the probable excess investment over and above the capital and reserve surplus and has made the calculation of interest on proportionate basis by saying that the assesse has earned the interest of Rs.32,30,423/- on an investment of Rs.3,78,23,489/-. As it is noticed that the assessee has not earned such interest, the addition made by the AO itself is deleted. 6. In the result the appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 13/01/2026. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 13/01/2026 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.1850/KOL/2025 3 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "