THE BORSAD PEOPLES CO OP CREDIT SOICETY LTD,ANAND V. INCOME TAX OFFICER, WARD 1(3)(1), PETLAD, ANAND

ITA 2566/AHD/2025

AI Insights

The case involves The Borsad Peoples Co-op. Credit Society Ltd., the appellant, contesting an order from the Learned Commissioner of Income Tax (Appeals) which confirmed an addition made by the Assessing Officer regarding interest income from a cooperative bank. The Assessing Officer had added Rs.19,18,546 to the assessee's income, stating that the interest income was from an investment in a bank, not a cooperative society, and thus not allowable under section 80P(2)(a)(i) of the Income Tax Act, 1961. The assessee argued that they had already disallowed the deduction of this interest income in their tax return and had offered a net income of Rs.10,69,070 after claiming the corresponding expenditures. The Tribunal decided to set aside the CIT(A)'s order and remand the matter back to the Assessing Officer to verify the assessee's claims regarding the taxation of the interest income.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837989 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Appeal Filed On: 22-12-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KETAKI DESAI
• Assessee Lawyers: MEHUL SHAH
• Keywords: Set aside

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ एस.एम.सी,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD \u0018ी संजय गग , \u0011ाियक सद एवं अ पूणा गु\"ा, लेखा सद क े सम&। ] Before Shri Sanjay Garg, Judicial Member And Annapurna Gupta, Accountant Member आयकर अपील सं /ITA No.2566/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2020-21 The Borsad Peoples Co-op. Credit Society Ltd. Silver Point Near Bus Stand Borsad Anand = 388 540 (Gujarat) बनाम/ v/s. The Income Tax Officer Ward-1(3)(1) Petlad – 388 450 \u0013थायी लेखा सं./PAN: AAAAT 1501 C (अपीलाथ)/ Appellant) (*+ यथ)/ Respondent) Assessee by : Shri Mehul Shah, AR Revenue by : Shri Ketaki Desai, Sr.DR सुनवाई की तारीख/Date of Hearing : 09/02/2026 घोषणा की तारीख /Date of Pronouncement: 18/02/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 08/10/2024 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2020-21. 2. The Assessing Officer (AO) made the addition of Rs.19,18,546/- observing that the interest income earned by the assessee-society was from Printed from counselvise.com ITA No.2566/Ahd/2025 The Borsad Peoples Co-op. Credit Society Ltd. vs. ITO Asst. Year : 2020-21 2 Co-operative bank and the same being an investment in bank and not in a Co-operative Society by the assessee-society and, hence, the same was not allowable u/s.80P(2)(a)(i) of the Act. The Ld. CIT(A) confirmed the addition so made by the AO. 3. Before us, the Ld. Counsel for the assessee submitted that the assessee had already disallowed the said deduction of the interest income in its return of income/computation. That the assessee, after claiming the corresponding/proportionate expenditure, has offered, for taxation an income of Rs.10,69,070/-. 4. In view of the above submissions, the imputed order of the Ld. CIT(A) is hereby set aside and the matter is restored to the file of AO for verification of the aforesaid limited fact. If the assessee has already offered for taxation the aforesaid receipt of interest income after deduction of the admissible expenditure, no further addition will be granted. The AO will examine the contention including the admissibility of the proportionate expenditure and if the claim is found admissible, then no double addition shall be made of the same receipt. 5. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 18/02/2026. Sd/- Sd/- (Annapurna Gupta ) Accountant Member ( Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 18/02/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Printed from counselvise.com ITA No.2566/Ahd/2025 The Borsad Peoples Co-op. Credit Society Ltd. vs. ITO Asst. Year : 2020-21 3 आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)- (NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद/DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with file) : 09.2.2026 2. Date on which the typed draft is placed before the Dictating Member. : 09.2.2026 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 18.2.26 7. Date on which the file goes to the Bench Clerk. : 18.2.26 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "