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| The Tax Publishers2019 TaxPub(DT) 2223 (Pune-Trib) INCOME TAX ACT, 19612
Section 80P
Since amount which was invested in banks to earn interest was not an amount due to any members, therefore, interest on deposits with sub treasury was allowable to the benefit of deduction under section 80P(2).
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Deduction under section 80P - Interest earned on deposits with sub-treasury - Allowability -
Assessee was a primary agricultural credit society registered under the Kerala Cooperative Societies Act 1969, provided credit facilities to its members and claimed deduction under section 80P. AO denied the deduction claimed under section 80P on the ground that assessee was doing the business of banking and in view of insertion of sub-section (4) to section 80P, assessee was not entitled to benefit of section 80P. Held: High Court in case of Tumkur Merchants Souharda Credit Cooperative Ltd. v. ITO, Ward-1, Tumkur in [ITA No. 307 of 2014, dt. 28-10-2014] : 2015 TaxPub(DT) 2857 (Karn-HC) held that amount which was invested in banks to earn interest was not an amount due to any members. Thus, interest on deposits with sub treasury was allowable to the benefit of deduction under section 80P(2).
Followed:M/s. The Totgars' Cooperative Sale Society Ltd. v. ITO (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC), Tumkur Merchants Souharda Credit Cooperative Ltd. v. ITO (2015) 230 Taxman 309 (Kar.) : 2015 TaxPub(DT) 2857 (Karn-HC), Mantola Co-Operative Thrift & Credit Society Ltd. v. CIT (2014) 110 DTR 89 (Delhi) : 2014 TaxPub(DT) 3786 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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