INCOME TAX ACT, 1961

Section 80P

Deduction under section 80P - Allowability of interest from investment in co-operative bank by assessee-co-operative society - Assessee engaged in banking business -

Assessee-cooperative society, manufacturing sugar claimed deduction under section 80(P) from interest earned from its investments with district central co-operative bank. AO alleged that interest earned from investments made in any bank, not being a co-op society, was not eligible for deduction under section 80P(2)(d). Held: Assessee was a co-operative society. It earned interest from Co-operative bank, which was also a co-operative society engaged in banking business. Following CIT v. Salem Agricultural Producers' Cooperative Marketing Society, wherein it was held that, a District Central Co-operative Bank, was also a society, in which event, income by way of interest and dividend earned by assessee/respondent society from investments made in Central Co-operative Bank, which was also a Co-operative Society was entitled for deduction under section 80P(2)(a)(i) of the Income Tax Act.

Followed:CIT v. The Salem Agricultural Producers Co-operative Marketing Society Ltd. [TCA No. 5/2015, dated 10-8-2016]

REFERRED : CIT v. Karnataka State Co-operative Apex Bank (2001) 251 ITR 194 (SC) : 2001 TaxPub(DT) 1587 (SC) CIT v. Kangra Co-Operative Bank Ltd. (2009) 309 ITR 106 (HP) : 2009 TaxPub(DT) 0786 (HP-HC) CIT & Anr. v. Sri Ram Sahakari Bank Ltd. (2004) 266 ITR 632 (Karn) : 2004 TaxPub(DT) 0247 (Karn-HC) The Salem Agricultural Producers Cooperative Marketing Society Ltd. v. ITO [ITA Nos. 730, 731 and 732/Mds/2014, dt. 30-6-2014] CIT v. Nawanshahar Central Co-Operative Bank Ltd. (2007) 289 ITR 6 (SC) : 2007 TaxPub(DT) 0079 (SC) CIT v. Ramanathapuram District Central Co-operative Bank Ltd. (2002) 255 ITR 423 (SC) : 2002 TaxPub(DT) 0842 (SC)

FAVOUR : In assessee's favour

A.Y. : 2015-16

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page