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| The Tax Publishers2020 TaxPub(DT) 2578 (Bang-Trib) INCOME TAX ACT, 1961
Section 80P
Where AO disallowed claim for deduction under section 80P holding that assessee was be hit by section 80P(4), matter was restored to file of AO to consider issue afresh in view of legal developments in light of various decisions rendered by High Court and Supreme Court on said issue in favour of assessee.
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Deduction under section 80P - Allowability - Applicability of sub section 4 of section 80P - Non-consideration of precedent judicial decisions rendered by High Court and Supreme Court
AO disallowed deduction under section 80P alleging that assessee was hit by section 80P(4). Assessee contended that it was carrying on money lending activity mainly with its members and therefore it could not be categorized as bank as held by AO. Held: Karnataka High Court held in case of Swabhimani Souharda Co-operative Bank Ltd. that entities registered under Karnataka Souhardha Sahakari Act will also fall under the definition of 'cooperative society' given under Income Tax Act. In view of above said binding decision, view of AO on this point has been overruled. Further, quantum of income to be taxed as other sources has also been decided by Karnataka High Court in Totgar Co-operative Sale Society Ltd. In view of above said legal developments, all issues were restored to file of AO for examining them afresh in light of various decisions rendered by High Court and Supreme Court.
Followed:M/s. The Totgars´ Cooperative Sale Society Limited v. ITO (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC), M/s. Swabhimani Souharda Credit Co. Operative Ltd. v. Government Of India Ministry Of Finance [WP No.48414/2018 (Kar) Dt.16-1-2020] : 2020 TaxPub(DT) 0504 (Karn-HC), M/s The Totgars' Co-Operative Sale Society Ltd. v. ITO (2015) 231 Taxman 794) (Kar)
REFERRED :
FAVOUR : In matter remanded
A.Y. :
IN THE ITAT, BANGALORE BENCH
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