| |
| The Tax Publishers2020 TaxPub(DT) 4285 (Bang-Trib) INCOME TAX ACT 1961
Section 80P
The matter relating to claim of deduction by assessee under section 80P was remitted back to AO with a direction to the assessee to produce a certificate from RBI that it does not possess license from it for doing banking business and further, that business carried on by assessee was not akin to business of a co-operative bank.
|
Deduction under section 80P(2)(a)(i) - Cooperative society - Interest income earned out of investment with cooperative banks -
Assessee, a cooperative society, was engaged in the business of providing credit facilities to its members. It claimed deduction under section 80P which was denied on the ground of that income earned out of investment with cooperative banks was treated as income from other sources not eligible for deduction under section 80P(2)(d). Held: Assessee would be addressed by setting aside the issue of deduction under section 80P(2)(a)(i) to AO for consideration afresh, with a direction to the assessee to produce a certificate from RBI that it does not possess license from it for doing banking business and further that business carried on by assessee was not akin to business of a co-operative bank.
REFERRED : The Citizen Co-operative Society Ltd. v. Asstt. CIT (2017) 84 taxman.com 114 (SC) : 2017 TaxPub(DT) 2053 (SC) Pr. CIT v. The Totagars Co-operative Sale Society 2017 TaxPub(DT) 1748 (Karn-HC) Tumkur Merchants Souharda Credit Cooperative Ltd. v. ITO (2015) 230 Taxman 309 (Karn) : 2015 TaxPub(DT) 2857 (Karn-HC).
FAVOUR : Matter remanded
A.Y. : 2015-16 & 2016-17
IN THE ITAT, BANGALORE BENCH
 SUBSCRIBE FOR FULL CONTENT
|