INCOME TAX ACT, 1961

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

Deduction under section 80P(2)(a)(i) - Co-operative society - Denial of claim alleging assessee-society was catering to lending of credit facilities to non-members -

Assessee was a co-operative society registered under the Karnataka Souharda Sahakari Act, 1997. AO disallowed the assessee's claim of deduction under section 80P(2)(a)(i) for the reason that the assessee was catering to lending of credit facilities to non-members also. Further, CIT (A) upheld the order of the AO. Assessee contended that it was a cooperative society, even though it was registered under the Karnataka Souharda Sahakari Act, 1997, and therefore entitled to the deduction under section 80P(2)(a)(i). Held: In view of Tribunal decision in the case of Sindhu Credit Souharda Sahakari Niyamita v. ITO in ITA No. 2144/Bang/2019-Order, dated 4-12-2019, Souharda co-operatives are also one form of cooperative societies registered under a law in force in the State of Karnataka for registration of co-operative societies and therefore, the same are entitled to deduction under section 80P(2)(a)(i). Accordingly, the order of the CIT (A) was set aside and the matter was remanded to 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 were not examined by the AO.

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

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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