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| The Tax Publishers2019 TaxPub(DT) 4096 (Pune-Trib) INCOME TAX ACT, 1961
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 entitled to the benefit of deduction under section 80P(2).
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Deduction under section 80P - Interest earned on deposits with nationalized bank - Allowability -
Assessee was a primary agricultural credit society provided credit facilities to its members and earned interest income from Bank on which deduction was claimed 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. The 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 entitled to the benefit of deduction under section 80P(2).
Followed:M/s. The Totgars´ Cooperative Sale Society Limited v. ITO (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC) Tumkur Merchants Souharda Credit Cooperative Ltd. v. ITO 2015 TaxPub(DT) 2857 (Karn-HC) Mantola Co-Operative Thrift & Credit Society Ltd. v. CIT - 2014 (9) TMI 833 - DELHI HIGH COURT
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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