GRAMIN JANATHA WELFARE CO-OPERATIVE SOCIETY LTD.NO R 1224,KALLUR V. INCOME TAX OFFICER, WARD 1(1), THRISSUR, THRISSUR

ITA 285/COCH/2025

AI Insights

The case involves the GraminJanatha Welfare Co-operative Society Ltd., which appealed against the order of the Addl/JCIT(A) that dismissed their appeal regarding the disallowance of carry forward losses, depreciation, and ICDS amounting to Rs.93,53,130 by the CPC during the processing of their income tax return for the assessment year 2023-24. The society argued that they were entitled to a deduction under section 80P of the Income Tax Act, 1961, as per CBDT Circular No.37/2016, which the CIT(A) dismissed relying on the Supreme Court judgment in Goetz India Ltd. The ITAT, however, found merit in the assessee's argument, referencing the Bombay High Court's decision in Gemplus Jewellery, and allowed the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668795 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2023-2024
• Other Referred Cases: Goetz India Ltd. vs. 284 ITR 323 (SC), Gemplus Jewellery vs. 330 ITR 175 (Bom.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: AMALJITH P.J.
• Keywords: Depreciation

Judgement Text

"ITA No.285/Coch/2025 GraminJanatha Welfare Co-operative Society Ltd., Thrisuur IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH:COCHIN BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA No.285/Coch/2025 AssessmentYear:2023-24 GraminJanatha Welfare Co-operative Society Ltd Kallur PO Kallur Thrissur 680 317 Kerala PAN NO : AAGAG7408P Vs. ITO Ward 1(1) Thrissur APPELLANT RESPONDENT Appellant by : Shri Amaljith P.J., A.R. Respondent by : Smt. Leena Lal, Sr. D.R. Date of Hearing : 29.05.2025 Date of Pronouncement : 23.06.2025 O R D E R PERPRAKASH CHAND YADAV, JUDICIAL MEMBER: Present appeal of the assessee is arising from the order of ld. Addl/JCIT(A) dated 25.2.2025 having DIN & Order No.ITBA/APL/S/250/2024-25/1073671327(1) and relates to the AY 2023-24. 2. Brief facts of the case as coming out from the orders of authorities below are that the assessee is a co-operative society, filed its income tax return for the impugned year on 30.10.2023 declaring nil income. The return of income filed by the assessee was processed u/s 143(1) of the Income Tax Act,1961 (in short “The Act”) determining the total income of the assessee society at Rs.93,53,130/-. ITA No.285/Coch/2025 GraminJanatha Welfare Co-operative Society Ltd., Thrisuur Page 2 of 3 3. Aggrieved with the order of CPC, assessee filed an appeal before the ld. Addl/JCIT(A) and inter-alia argued that while processing the return of income, the CPC has disallowed an amount of Rs.93,53,130/-, being carry forward losses, depreciation and ICDS. It is the contention of the assessee that since the assessee is entitled for the deduction u/s 80P of the Act, therefore, in terms of the circular of CBDT No.37/2016, the disallowance made would automatically eligible for the deduction u/s 80P of the Act. However, ld. CIT(A) dismissed the appeal of the assessee relying upon the judgement in the case of Goetz India Ltd. reported in 284 ITR 323 (SC). 4. Aggrieved with the order of ld. Addl/JCIT(A), assessee has come up in appeal before us. 5. Counsel for the assessee argued that in terms of circular of CBDT No.37/2016 dated 2.11.2016, assessee is entitled for the deduction u/s 80P of the Act in respect of adjustments made by the CPC while processing the return of income and hence no income would remain for taxability. 6. Ld. D.R. relied upon the orders of authorities below. 7. After considering the rival submissions, we are of the view that assessee is fully entitled for the deduction u/s 80P of the Act with respect to the amounts added by the CPC while processing the return of income. There are umpteen number of judgements of the coordinate benches of ITAT, wherein it has been held that in view of the judgement of Hon’ble Bombay High Court in the case of GemplusJewellery reported in 330 ITR 175 (Bom.), deduction u/s 80P(2) of the Act is to be granted on the assessed income and hence the assessee is entitled for deduction u/s 80P of the Act. ITA No.285/Coch/2025 GraminJanatha Welfare Co-operative Society Ltd., Thrisuur Page 3 of 3 8. In the result, appeal filed by the assessee is allowed. Order pronounced in the open court on 23rd June, 2025 Sd/- (Inturi Rama Rao) Accountant Member Sd/- (Prakash Chand Yadav) JudicialMember Bangalore, Dated 23rd June, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Cochin. 5 Guard file By order Asst. Registrar, ITAT, Cochin. "