The Tax PublishersITA No. 2066/Bang/2018
2019 TaxPub(DT) 0070 (Bang-Trib)

INCOME TAX ACT, 1961

Section 80P(2)

As there was no discussion in the order of CIT (A) on the factual aspect as to whether the deposit in bank was out of assessee's own funds or out of liability, the order of CIT (A) was set aside and matter was restored back for fresh decision.

Deduction under section 80P(2) - Cooperative society - Banking business -

CIT (A) held that assessee-cooperative society was eligible for deduction under section 80P(2) as it was not a cooperative bank. Aggrieved by the same, Revenue preferred appeal contending that CIT (A) erred in holding that assessee was not a cooperative bank ignoring the fact that the nature of its business and functioning had all the trappings and attributes of a bank. Held: In the subject case, there was no discussion in the order of CIT (A) on the factual aspect as to whether the deposit in bank was out of assessee's own funds or out of liability, therefore, the order of CIT (A) was set aside and matter was restored back for fresh decision after examining the facts of subject case in the light of the judgments of High Court in the case of Tumkur Merchants Souharda Credit Cooperative Limited v. I.T.O., Ward-1, Tumkur in (I.T.A. NO . 307 OF 2014, dt. 28-10-2014) : 2015 TaxPub(DT) 2857 (Karn-HC) and in the case of The Pr. CIT, I.T.O. v. The Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn-HC) : 2017 TaxPub(DT) 1748 (Karn-HC) and also the judgment of Apex Court in the case of M/s. The TotgarsĀ“ Cooperative Sale Society Limited v. ITO., Karnataka (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC) and then decide the issue afresh as per law.

Relied:M/s. The TotgarsĀ“ Cooperative Sale Society Limited v. ITO. Karnataka (2010) 322 ITR 283 (SC) : 2010 TaxPub(DT) 1466 (SC) The Pr. CIT, Income Tax Officer v. The Totagars Co-operative Sale Society (2017) 395 ITR 611 (Karn-HC) : 2017 TaxPub(DT) 1748 (Karn-HC) Tumkur Merchants Souharda Credit Cooperative Limited v. The Income Tax Officer, Ward-1, Tumkur in (I.T.A. NO . 307 OF 2014, dt. 28-10-2014) : 2015 TaxPub(DT) 2857 (Karn-HC)

REFERRED : The Citizen Co-Operative Society Limited, Through Its Managing Director, Hyderabad v. Asstt. CIT (2017) 397 ITR 1 (SC) : 2017 TaxPub(DT) 2053 (SC)

FAVOUR : Matter remanded

A.Y. : 2014-15



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