ITO, PALGHAR V. JANKALYAN NAGARI SAHAKARI PATSANSTHA MARYA JAWHAR, JAWHAR

ITA 2792/MUM/2025

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The case involves an appeal by the revenue against the order of the CIT(A) which deleted the additions made by the Assessing Officer (A.O.) in the assessment of Jankalyan Nagari Sahakari Patasanstha Marya Jawhar for the Assessment Year 2021-22. The primary contention of the revenue was regarding the eligibility of the assessee society to claim deductions under section 80P of the Income-tax Act, 1961, specifically concerning the interest income earned from investments with other cooperative banks. The CIT(A) had earlier deleted the additions made by the A.O., which included a disallowance of deduction under section 80P and an addition concerning unexplained credit under section 68. The tribunal's decision to dismiss the appeal was influenced by the monetary threshold set by the CBDT circular, which aims to reduce litigation on trivial monetary issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398143 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2021-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITHA KAUSHIK
• Assessee Lawyers: SUBODH RATNAPARKHI
• Keywords: Business income; Unexplained cash credit
• Section: 144; 68

Judgement Text

" |आयकर अपीलीय न्यायाधिकरण न्यायपीठ, म ुंबई| IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER आयकर अपील सुं./ITA No. 2792/MUM/2025 (नििाारण वर्ा / Assessment Year :2021-22) ITO Aayakar Bhawan, BIDCO Road, Palghar, Palghar, Maharashtra-401404 v/s. बिाम Jankalyan Nagari Sahakari Patsanstha Marya Jawhar Dhanashree Apartment, Shivaji Path, Jawhar, Dist. Palghar, Maharashtra- 401603 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAEAJ7654C Appellant/अपीलार्थी .. Respondent/प्रनिवादी निर्ााररती की ओर से /Assessee by: Shri Subodh Ratnaparkhi राजस्व की ओर से /Revenue by: Ms. Kavitha Kaushik, Sr. DR. स िवाई की िारीख / Date of Hearing 05.06.2025 घोर्णा की िारीख/Date of Pronouncement 05.06.2025 आदेश / O R D E R PER NARENDRA KUMAR BILLAIYA [A.M.]:- This appeal by the revenue is preferred against the order dated 12.02.2025 by NFAC, Delhi [hereinafter referred to as “CIT(A)”] for Assessment Year [AY] 2021-22. P a g e | 2 ITA No. 2792/Mum/2025 A.Y. 2021-22 Jankalyan Nagari Sahakari Patasanstha Marya Jawhar 2. The grievance of the revenue reads as under: “1. On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that the interest Income of the assessee society out of its \"investment' with other co-operative banks is not eligible for deduction u/s. 80P(2)(a) as this interest income earned by the assessee society from Its investments with co- operative banks do not constitute operational Income or business income of the assessee society and should be taxed under the head \"Income from other sources\". 2. On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that the interest income earned by the assessee society cannot be held eligible for deduction u/s. 80P(2) (d) of the Act either as the section 80P(2)(d) specifies that the interest income earned by the co-operative societies from its investments with any other co-operative society would be eligible for deduction under the said section. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not allowing the A.O. to examine the additional” 3. It is pertinent to understand the assessment order dated 13.12.2022 framed u/s 144 r.w.s. 144B of the Income-tax Act, 1961 [hereinafter referred to as “Act”]. The returned income of the assessee was assessed at Rs. 2,79,82,590/- after making two additions (i) disallowance of deduction u/s 80P of the Act - Rs. 38,35,590/- (ii) addition u/s 68 in respect of unexplained credit – Rs. 2,41,46,999/-. 4. When the additions were agitated before the CIT(A), the CIT(A), vide order dated 12.04.2025, deleted both the additions. 5. A perusal of the grounds taken in appeal before us shows that the revenue has contested only the deletion of Rs. 38,35,590/-, which means that the deletion of Rs. 2,41,46,999/- has attained finality. P a g e | 3 ITA No. 2792/Mum/2025 A.Y. 2021-22 Jankalyan Nagari Sahakari Patasanstha Marya Jawhar 6. The tax on Rs. 38,35,590/- would be less than Rs. 60,00,000/-. Therefore, this appeal by the revenue has to be dismissed in light of the CBDT circular No. 09 of 2024 dated 17.09.2024. 7. In the result, the appeal of the revenue is dismissed. Order pronounced in the open court on 05.06.2025. Sd/- Sd/- SAKTIJITT DEY NARENDRA KUMAR BILLAIYA (उपाध्यक्ष/VICE PRESIDENT) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 05.06.2025 अननक ेत स ुंह र जपूत/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "