DCIT, CIRCLE 1(1)(1), AHMEDABAD, AHMEDABAD V. GUJARAT STATE COOPERATIVE MARKETING FEDERATION LTD, AHMEDABAD

ITA 2051/AHD/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad against the Gujarat State Cooperative Marketing Federation Ltd., concerning the disallowance under section 80P of the Income Tax Act, 1961. The primary issue was the eligibility of interest income earned from a cooperative bank for deduction under section 80P(2)(d). The Commissioner of Income Tax (Appeals) had earlier deleted the disallowance, which the Revenue challenged. However, the Tribunal's earlier decision in ITA No. 640/Ahd/2019, which quashed the revision order under section 263 that sought to re-examine this deduction, rendered the present appeal infructuous.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838551 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 30-10-2025
• Other Referred Cases: ITA No. 640/Ahd/2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Deputy Commissioner of Income Tax Circle-1(1)(1), Ahmedabad (Appellant) Vs Gujarat State Cooperative Marketing Federation Ltd. 49, Shrimali Society, Opp. Navrangpura Police Station, Navrangpura, Ahmedabad-380009 Gujarat PAN: AAAAG2927K (Respondent) Revenue Represented: Shri Kalpesh Rupavatia, Sr. D.R. Assessee Represented: Shri S.N. Divatia, & Shri Samir Vora, A.Rs. Date of hearing : 17-02-2026 Date of pronouncement : 19-02-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Revenue as against appellate order dated 20-08-2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the order passed under section 143(3) r.w.s. 263 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2014-15. ITA No: 2051/Ahd/2025 Assessment Year: 2014-15 Printed from counselvise.com I.T.A Nos. 2051/Ahd/2025 A.Y. 2014-15 DCIT Vs. Gujarat State Cooperative Marketing Federation Ltd. 2 2. The Grounds of Appeal raised by the Revenue are as follows: 1. \"Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the disallowance u/s. 80P amounting to Rs.3,29,44,728/-, without appreciating the fact that the interest Income earned from Co-operative bank is not eligible for deduction in view of the provision of sec 80P(2)(d) of the IT Act ?\" 2. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary\". 3. It is, therefore, prayed that the order of Ld. CIT(A) may be set aside and that of the Assessing Officer be restored\". 3. Ld. Sr. D.R. appearing for the Revenue fairly conceded that the Revision order passed under section 263 to re-examine the allowability of deduction u/s. 80P(2)(d) in respect of interest income of Rs.3,29,44,728/- earned by the assessee. This Revision order was quashed by Co-ordinate Bench of this Tribunal in ITA No. 640/Ahd/2019 vide order dated 01-06-2022. Since Revenue is in appeal before Hon’ble High Court of Gujarat against the quashing of 263 order by ITAT, the present appeal is filed by the Revenue. 4. Initially none appeared on behalf of the assessee and conclusion of the hearing Ld.Counsel for the assessee appeared and filed his Vakalatnama and also explained when the matter was called he was held up in the other Bench lead by Hon’ble Vice President of this Tribunal. Ld. Counsel further submitted copy of the Tribunal order in ITA No. 640/Ahd/2019 and also produced before us copy from the Website of Hon’ble Gujarat High Court clearly showing no appeal is pending against the order of this Tribunal in ITA No. 640/Ahd/2019. Printed from counselvise.com I.T.A Nos. 2051/Ahd/2025 A.Y. 2014-15 DCIT Vs. Gujarat State Cooperative Marketing Federation Ltd. 3 5. Ld. Counsel further submitted before us verification of this case by referring to ITA No. as well as searched by assessee’s name, both searches given the result that “no data available” in the Hon’ble Gujarat High Court Website. Since the very Revision order passed u/s. 263 itself is quashed by this Tribunal in ITA No. 640/Ahd/2019, the consequential orders passed by the Lower Authority has no legs to stand in the eyes of law. Therefore the present appeal filed by the Revenue is hereby dismissed as infructuous. 6. In the result, the appeal filed by the Revenue is hereby dismissed. Order pronounced in the open court on 19-02-2026 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 19/02/2026 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद Printed from counselvise.com "