INCOME TAX ACT, 1961

Section 80P(2)

Deduction under section 80P(2) - Assessee primary agricultural credit society - Allowability -

Assessee, a co-operative bank, had claimed deduction under section 80P. AO denied the deduction claimed alleging that assessee was primarily engaged in business of banking and therefore, in view of provisions of section 80P(4) which was inserted with effect from 1-4-2007, assessee was not entitled to deduction under section 80P.Held: High Court in the case of Chirakkal Service Co-op. Bank Ltd. v CIT [(2016) 384 ITR 490 (Ker) : 2016 TaxPub(DT) 1770 (Ker-HC)] had held that assessee, a primary agricultural credit society, registered under the State Cooperative Societies Act, 1969 was entitled to the benefit of deduction under section 80P(2). Therefore, deduction could not be denied to assessee.

Followed:Chirakkal Service Co-operative Bank Ltd. v. CIT (2016) 384 ITR 490 (Ker) : 2016 TaxPub(DT) 1770 (Ker-HC). Relied:Citizen Cooperative Society Limited, Through ITS Managing Director, Hyderabad v. Asstt. CIT, Circle 9 (1), Hyderabad in (Review Petition (Civil) No. 2625 of 2017 Civil Appeal No. 10245 OF 2017, dt. 21-11-2017) : 2017 TaxPub(DT) 5616 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

SUBSCRIBE FOR FULL CONTENT