INCOME TAX ACT, 1961

Section 80P(2)

Deduction under section 80P(2) - Allowability - Whether assessee being primary agricultural credit societies could claim deduction under section 80P -

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).

REFERRED : Dy. CIT v. Ace Multi Axes Systems Ltd. 2017 TaxPub(DT) 5071 (SC) The Citizen Co-Operative Society Ltd. & Anr. v. Asstt. CIT (2017) 397 ITR 1 (SC) : 2017 TaxPub(DT) 2053 (SC) The Mavilayi Service Co-Operative Bank Ltd. & Ors. v. CIT [ITA No. 97/2016, Order, dt. 19-3-2019] : 2019 TaxPub(DT) 4909 (Ker-HC) CIT v. NLC Employees Co-operative Thrift & Credit Society Ltd. [Tax Case Appeal Nos.786 to 789 of 2015, dt. 10-8-2016] The Chirakkal Service Co-Operative Bank Ltd. v. CIT (2016) 384 ITR 490 (Ker.) : 2016 TaxPub(DT) 1770 (Ker-HC) Quepem Urban Co-operative Credit Society Ltd. v. Asstt. CIT 2015 TaxPub(DT) 2592 (Bom-HC) CIT & Anr. v. Bangalore Commercial Transport Credit Co-operative Society Ltd. [ITA No. 598/2013, dt. 27-6-2014] CIT v. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot 2015 TaxPub(DT) 0429 (Karn-HC) Perinthalmanna Service Co-Operative Bank Ltd. v. ITO & Anr. (2014) 363 ITR 268 (Ker) : 2014 TaxPub(DT) 1572 (Ker-HC)

FAVOUR : In assessee's favour

A.Y. :

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