GOVERNMENT PRINTING PRESS EMPLOYEE CREDIT CO-OPERATIVE SOCIETY LTD,PUNE V. ITO, WARD 7(1), PUNE, PUNE

ITA 793/PUN/2025

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The case involves the Government Printing Press Employee Credit Co-operative Society Limited, which appealed against the order of the Additional/Joint Commissioner of Income Tax (Appeals)-2, Visakhapatnam. The appeal was filed due to the disallowance of deductions claimed under sections 80P(2)(a)(i), 80P(2)(c), and 80P(2)(d) of the Income Tax Act, 1961, during the assessment year 2019-20. The main contention was that the deductions were wrongly disallowed by the CPC while processing the return under section 143(1) of the Act. The Tribunal examined the submissions and the relevant provisions of the Act, ultimately deciding in favor of the appellant by allowing the claimed deductions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777576 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 25-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMNATH P MURKUNDE
• Assessee Lawyers: SARVESH KHANDELWAL
• Keywords: Business income; Co-operative Credit Society; FORM 26AS
• Section: 11; 6; 12; 10

Judgement Text

" आयकर अपीलीय अधिकरण ”ए” न्यायपीठ पुणेमें। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A” :: PUNE BEFORE MS.ASTHA CHANDRA, JUDICIAL MEMBER AND DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No.793/PUN/2025 निर्धारण वषा / Assessment Year: 2019-20 Government Printing Press Employee Credit Co-operative Society Limited, YerawadaKaragruh, Airport Road, Yerawada, Pune – 411006. V s The Income Tax Officer, Ward-7(1), Pune. PAN: AABAG2986P Appellant/ Assessee Respondent / Revenue Assessee by Mr.Sarvesh Khandelwal Revenue by Shri Ramnath P Murkunde Date of hearing 16/09/2025 Date of pronouncement 30/09/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of ld.Additional/Joint Commissioner of Income Tax(Appeal)-2, Visakhapatnamunder section 250 of the Income Tax Act, 1961 dated 30.01.2025 emanating from the Assessment Order passed under section 143(1) of the Act, dated 02.12.2020 for AY 2019-20.The Assessee has raised the following grounds of appeal : Printed from counselvise.com ITA No.793/PUN/2025 [A] 2 “1. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Act CPC has erred in not allowing the deduction u/s 80P(2)(d) and u/s 80P(2)(c) of the Act. Just and proper relief be granted 2. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that, disallowance of deduction claimed u/s 80P(2)(a)(i) of Rs.1,30,92,363/-, 80P(2)(c) of Rs.28,171/- and u/s 80P(2)(d) of Rs.13,08,573/- while processing the return u/s 143(1) of the Income Tax Act, 1961 is not covered by scope of the said section. It is held that intimation order is not passed in accordance with the provisions of the Act. The deduction so claimed by the assessee be allowed. 3. The appellant prays to be allowed to add, amend, modify, rectify, delete, or raise any grounds of appeal at the time of the hearing.” Submission of ld.AR : 2. The ld.Authorised Representative(ld.AR) for the Assessee filed paper book. Ld.AR submitted that the Assessee is a Co- operative Credit Society of the employees’ of Government Printing press. The main activity of the assessee is to provide short term Loans to its members. During the year the assessee has earned interest income of Rs.1,30,73,976/- from various Loans given to its members. Assessee claimed deduction u/s.80P(2)(a) of the Act on the said Interest. Ld.AR took us through the Return of Income which is at page 96-162 of the Paper book. Ld.AR submitted that Assessee is eligible for deduction and CPC has erred. Ld.AR took us to page no.146 and 147 of the paper book, wherein Assessee in his Return of Income has claimed deduction u/s.80P(2)(a)(i), 80P(2)(c) and 80P(2)(d) of the Act. Ld.AR submitted that CPC erred in not allowing these deductions. Printed from counselvise.com ITA No.793/PUN/2025 [A] 3 Submission of ld.DR : 3. Ld.Departmental Representative for the Revenue relied on the order under section 143(1) of CPC/Assessing Officer and ld.CIT(A). Findings & Analysis : 4. We have heard both the parties and perused the records. In this case, Assessee is a Co-operative Credit Society formed by employees working in Government Printing Press. During the year, Assessee filed Return of Income for A.Y.2019-20 u/s.139(1) of the Act. In the Return of Income, Assessee has claimed deductions as under : Deductions under Chapter section 80P Income Amount eligible for deduction 1 Sec.80P(2)(a)(i) Banking/Credit Facilities to its members 13092363 13092363 2 Sec.80P(2)(a)(ii) Cottage Industry 0 0 3 Sec.80P(2)(a)(iii)Purchase of Agricultural produce grown by its members 0 0 4 Sec.80P(2)(a)(iv) Purchase of Agricultural Implements, seeds, livestocks or other articles intended for agriculture for the purpose of supplying to its members 0 0 5 Sec.80P(2)(a)(v) Processing, without the aid of power, of the agricultural Produce of its members 0 0 6 Sec.80P(2)(a)(vi) Collective disposal of Labour of its members 0 0 7 Sec.80P(2)(a)(vii) Fishing or allied activities for the purpose of supplying to its members 0 0 8 Sec.80P(2)(b) Primary cooperative society engaged in supplying Milk, oilseeds, fruits or vegetables raised or grown by its members to federal cooperative society engaged in supplying Milk, oilseeds, fruits or vegetables/Government Company/corporation established by or under a Central, State or Provincial 0 0 Printed from counselvise.com ITA No.793/PUN/2025 [A] 4 Act 9 Sec.80P(2)(c)(i) consumer Cooperative Society Other than specified in 80P(2a) or 80P(2b) 35721 35721 10 Sec.80P(2)(c)(ii) Other Cooperative Society engaged in activities Other than specified in 80P(2a) or 80P(2b) 0 0 11 Sec.80P(2)(d) Interest/Dividend from Investment in other co-operative society 1308573 1308573 12 Sec.80P(2)(e) Income from Letting of godowns / warehouses for storage, processing / facilitating the marketing of commodities 0 0 13 Sec.80(2)(f) Others 0 0 14 Total 14436657 14436657 5. Thus, Assessee had claimed deduction u/s.80P(2) of the Act. It is an admitted fact that Assessee is a Co-operative Credit Society. During the year, Assessee had earned Interest Income. CPC has disallowed assessee’s claim stating as under : Sl.No Schedule Error Description Amount in Income Tax Return Amount as computed Variance 1 Schedule 80P In Schedule 80P, deduction u/s Sec.80P(2)(c)(i) Consumer Cooperative Society Other than specified in 80P(2a) or 80P(2b) deduction claimed cannot be more than Rs 100000 OR In Schedule 80P, deduction u/s Sec.80P(2)(c)(i) Consumer Cooperative Society Other than specified in 80P(2a) or 80P(2b) deduction claimed cannot be more than non speculative and non specified business income 35721 7550 28171 2 Schedule 80P In Schedule 80P, deduction u/s 80P(2)(a)(i) to (vii) cannot be more non speculative and non specified business income 13092363 7550 13084813 Printed from counselvise.com ITA No.793/PUN/2025 [A] 5 6. Under Section 143(1) of the Act, only following adjustments are possible : 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:— (a) the total income or loss shall be computed after making the following adjustments, namely:— (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under sections 10AA, 80-IA, 80- IAB, 80-IB, 80-IC, 80-ID or section 80-IE, if the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made: 36[Provided also that no adjustment shall be made under sub-clause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 2018;] 7. The CPC has invoked Section 143(1)(a)(ii) of the Act. Sub- Clause-ii of Section 143(1)(a) talks about any incorrect claim. However, in this case, we have noted that Assessee has claimed 80P in the Return of Income. The reason given by CPC is not as per law. In these facts and circumstances of the case, we are of the considered opinion that Assessee is eligible for deduction claimed by Printed from counselvise.com ITA No.793/PUN/2025 [A] 6 Assessee in the Return of Income. Accordingly, Grounds of appeal raised by the Assessee are allowed. 8. In the result, appeal of the Assessee is allowed. Order pronounced in the open Court on 30 September, 2025. Sd/- Sd/- MS.ASTHA CHANDRA Dr.DIPAK P. RIPOTE JUDICIAL MEMBER ACCOUNTANT MEMBER पपणे / Pune; ददिधंक / Dated : 30 Sep, 2025/ SGR आदेशकीप्रनिनलनपअग्रेनषि / Copy of the Order forwarded to : 1. अपऩलधर्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. नवभधगऩयप्रनिनिनर्, आयकर अपऩलऩय अनर्करण, “ए” बेंच, पपणे / DR, ITAT, “A” Bench, Pune. 6. गधर्ाफ़धइल / Guard File. आदेशधिपसधर / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपऩलऩय अनर्करण, पपणे/ITAT, Pune. Printed from counselvise.com "