Co-operative Credit Societies engaged in providing credits to its members only is not a co-operative bank and thus entitled for deduction u/s 80P(2)(a)(i)
1. Assessee filed return of income after claiming deduction under sec. 80P(2)(a)(i) of the Act for ₹ 76,30,025/-
2. It was claimed that the society is entitled to deduction under sec. 80P(2)(a)(i) as it was a Cooperative Society carrying on the business of banking or providing credit facilities to its members
3. However, the claim of the assessee for deduction under sec. 80P(2)(a)(i) was rejected by the Assessing Officer in the order passed under sec. 143(3) of the Act on the ground that the assessee was a cooperative bank, and hence, not entitled to claim deduction by virtue of sec. 80P(4)
4. On appeal, Commissioner of Income Tax (Appeals) allowed the claim of the assessee by following the decision of Karnataka High Court in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot and in the case of General Insurance Employees Cooperative Credit Society Ltd.
5. Department moved to the ITAT and after hearing both parties dismissed the appeal of Revenue and decided in favour of the assessee
The Commissioner of Income Tax (Appeals) has allowed the claim of deduction under sec. 80P(2)(a)(i) of the Act by following the decisions of the Hon‘ble Karnataka High Court in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot (supra) and in the case of General Insurance Employees Cooperative Credit Society Ltd. (supra). No contrary decision could be cited by the Departmental Representative. We, therefore, do not find any good and justifiable reason to interfere with the order of the Commissioner of Income Tax (Appeals), which is hereby confirmed and the ground of appeal of the Revenue is dismissed.
Cases referred to
2. Commissioner of Income Tax (A), Mysore & Others Vs General Insurance Employees Cooperative Credit Society Ltd ITA No 273/2013 dt 27.6.2014
3. Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014
6. ITAT Bangalore B Bench decision vide ITA No 1069/Bang/2010 for the Asst Year 2007-08 of M/s Bangalore Commercial Transport Coop Society Ltd, Bangalore
7. ITO Vs Yeshwantpur Credit Coop Society Ltd ITA No. 717/Bang/2011 Dt 11.4.2012 rendered by ITAT A Bench, Bangalore
9. DCIT Vs. M/s Dwarka Souharda Credit Sahakari Ltd. ITA No.04-06/PNJ/2012