Summary
- The Income Tax Appellate Tribunal has allowed a co-operative society's appeal for a ₹33.23 lakh deduction under Section 80P for the assessment year 2020-21.
- This decision overturned the National Faceless Appeal Centre's order, which had previously disallowed the deduction citing business activity disqualification.
- Citing the Supreme Court's ruling in Mavilayi Service Co-operative Bank Ltd. v. CIT, the Tribunal affirmed the society's eligibility for the deduction despite non-appearance at hearings.
- The ruling could set a precedent for similar co-operative societies seeking deductions under Section 80P, especially regarding interest income from co-operative banks.
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