The Tax Publishers2019 TaxPub(DT) 5194 (Mad-HC)

INCOME TAX ACT, 1961

Section 80P

Since assessee was not co-operative bank and that their activities in the nature of accepting deposits, advancing loans etc., carried on by assessees were confined to its members only and that too in a particular geographical area, therefore, assessee was eligible for deduction under section 80P(2)(a)(i).

Deduction under section 80P - Whether primary agricultural credit societies were entitled for deduction or not - Allowability of -

Issue arose under consideration as to whether Tribunal was right in holding that assessee was to be treated as primary agricultural society and was carrying on the business of banking or providing credit facilities to its members and was entitled for deduction under section 80P(2)(a)(i) with respect to the interest received from Class B members who were involved in non-agricultural activity. Held: Order of the Court in case of Tiruchengode Agricultural Producers Cooperative Marketing Society Ltd., S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd. in (Tax Case Appeal Nos. 484 to 487 and 490 of 2016, dt. 2-8-2016) wherein it was held that assessee was not co-operative bank and that their activities in the nature of accepting deposits, advancing loans etc., carried on by assessees were confined to its members only and that too in a particular geographical area. Therefore, assessee was eligible for deduction under section 80P(2)(a)(i).

REFERRED : K. 343, Ondipudur Primary Agricultural Cooperative Credit Society Ltd., K. 2065 Kalikkanaickenpalayam Primary Agricultural Cooperative Credit Society Ltd., K. 1788 Naraseepuram Primary Agricultural Cooperative Credit Society Ltd., K. 758, Ikkarai Boluvampatti Primary Agricultural Cooperative Credit Society Ltd. And K. 1006 Singanallur Primary Agricultural Cooperative Credit Society Ltd. v. The ITO, Coimbatore in (W.P. Nos. 15651, 15660, 15671, 15672 & 15667 of 2019 & W.M.P. Nos. 15531, 15533, 15536, 15537, 15542, 15543, 15548, 15549, 15539 & 15540 of 2019, dt. 11-6-2019) : 2019 TaxPub(DT) 4563 (Mad-HC) The CIT v. Tiruchengode Agricultural Producers Cooperative Marketing Society Ltd., S-1308 Ammapet Primary Agricultural Cooperative Bank Ltd. in (Tax Case Appeal Nos. 484 to 487 and 490 of 2016, dt. 2-8-2016) The CIT v. M/s. Veerakeralam Primary Agricultural Co-operative Credit Society (2016) 388 ITR 492 (Mad) : 2016 TaxPub(DT) 3633 (Mad-HC) The Chirakkal Service Co-Operative Bank Ltd. v. The CIT (2016) 384 ITR 490 (Ker) : 2016 TaxPub(DT) 1770 (Ker-HC) ITO v. M/s. Veerakeralam Primary Agricultural Co operative Credit Society in (I.T.A. No. 197/Mds/2013, dt. 11-2-2014) : 2014 TaxPub(DT) 2539 (Chen-Trib)

FAVOUR : In assessee's favour

A.Y. :



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