INCOME TAX ACT, 1961

Section 80P(2)

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

Assessee, a co-operative bank, had claimed deduction under section 80P. AO denied the deduction 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). Therefore, deduction could not be denied to assessee.

REFERRED : DCIT v. Ace Multi Axes Systems Ltd. (2018) 400 ITR 0141 (SC) : 2017 TaxPub(DT) 5071 (SC) The Citizen Co-Operative Society Limited v. ACIT (2017) 397 ITR 1 (SC) : 2017 TaxPub(DT) 2053 (SC) The Mavilayi Service Co-Operative Bank Ltd. v. CIT [ITA No.97/2016 Order dated 19-3-2019] : 2019 TaxPub(DT) 4909 (Ker-HC) The Chirakkal Service Co-Operative Bank Ltd. v. CIT (2016) 384 ITR 490 (Ker.) : 2016 TaxPub(DT) 1770 (Ker-HC) Perinthalmanna Service Co-Operative Bank Limited v. ITO (2014) 363 ITR 268 (Ker) : 2014 TaxPub(DT) 1572 (Ker-HC)

FAVOUR : In assessee's favor

A.Y. :

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