INCOME TAX ACT, 1961

Section 80P(2)(a)(i)

Deduction under section 80P - Co-operative society - Whether Souharda Sahakari would be regarded as co-operative society for the purpose of deduction -

Assessee was a co-operative society registered under the Karnataka Souharda Sahakari Act, 1997. AO denied assessee's claim of deduction under section 80P(2)(a)(i) on this basis that the assessee was a Souharda Sahakari and therefore, it could not be regarded as a co-operative society. Further, CIT(A) upheld the order of the AO. Held: In view of Tribunal decision in the case of M/s. Sindhu Credit Souharda Sahakari Niyamita v. ITO [ITA No. 2144/Bang/2019-Order, dated 4-12-2019], assessee's claim regarding deduction under section 80P(2)(a)(i) cannot be rejected on the basis that assessee is a Souharda Sahakari and therefore, cannot be regarded as a co-operative society. Accordingly, the impugned order of the CIT(A) was set aside and the matter was remanded to the AO for fresh decision regarding allowability of deduction under section 80P(2)(a)(i) after examining other conditions for allowing such deduction because those conditions are not examined by the AO.

Followed:M/s. Sindhu Credit Souharda Sahakari Niyamita v. ITO [ITA No. 2144/Bang/2019-Order, dated 4-12-2019]

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. :

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