Tribunals
Summary and Review of Case Laws Decided by Income Tax Appellate Tribunals
Thursday, 08 October 2015 13:45

Deduction u/s 80P - Co-operative credit societies for members are not co-operative banks and thus entitled for deduction u/s 80P - Panaji Tribunal

Written by
Rate this item
(0 votes)

Gist

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)

Facts

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

Adjudication

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

1. CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014

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

4. CIT Vs Jafari Mom in Vikas Coop Credit Society Ltd ITA 442,443 & 863 of 2013 of Gujarat High Court

5. Taramani Manila Coop Credit Society Vs ITO Ward 1(2), Belgaum ITA 229 & 230/PNJ/2013dt 28.2.2014

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

8. M/s Jayalakshmi Mahila Vividodeshagala Souharada Sahakari Ltd & Another in ITA No 01 to 03/PNJ/2012 and ITA 04 to 06/PNJ/2012

9. DCIT Vs. M/s Dwarka Souharda Credit Sahakari Ltd. ITA No.04-06/PNJ/2012

Additional Info

Read 19280 times Last modified on Saturday, 13 February 2016 15:28
Taxpundit

Founder & CEO with over 20 years of total professional experience spread across Internal Audit, IT Audit, Enterprise Risk Management, Financial statement audit & Business Finance Management.

https://www.linkedin.com/in/taxpundit | This email address is being protected from spambots. You need JavaScript enabled to view it.

Leave a comment

Thank you for reading! We welcome and appreciate your comments, but at the same time, make sure you are adding something valuable to this article. If you have any serious queries, suggestions or anything related to this article, feel free to share them, we really appreciate that.

If you want to give us any feedback or report any errors, you can email your concerns on taxpundit@taxpundit.org and we'll revert back soon.

Recommended Articles

 

Have you done Analysis of any Case? Tell Us About It.

SITE INFORMATION

All content herein is the copyright of Taxpundit. No images, text, or any other content may be, reproduced or redistributed without the express written consent of Taxpundit.

All Rights Reserved. All Content Copyright.

Newsletter

Subscribe to our newsletter and stay updated on the latest developments and special offers!