Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 683 - AT - Income TaxGrant of deduction u/s 80P(2)(a)(i) – Income earned from various loans – Nature of assessee – cooperative bank or not - Whether the assessee is a cooperative bank which will disentitle from claiming deduction u/s 80P(2)(a)(i) or it is a cooperative credit society extending benefit to its members only - Held that:- The cooperative society allows its members to open savings account only for nomenclature purposes but cheque facility is not permitted as for normal banking operations - The 17 items listed under the aims and objectives of the cooperative society do not include any item for carrying on the business of banking - section 80P(4) cannot be applied to the assessee since neither has its obtained a license for banking from the RBI nor does it carry on any banking business as envisaged under the Banking Regulation Act, 1949 – following the decision in Jyoti Cooperative Credit Society Limited Versus Income Tax Officer [2014 (11) TMI 177 - ITAT BANGALORE] - section 80P(4) is applicable only to cooperative banks and not to credit cooperative societies - The intention of the legislature of bringing in cooperative banks into the taxation structure was mainly to bring in par with commercial banks - Since the assessee is a cooperative society and not a cooperative bank, the provisions of section 80P(4) will not have application in the assessee’s case and therefore, it is entitled to deduction u/s 80P(2)(a)(i) of the Act – thus, the order of the CIT(A) is upheld – Decided against revenue.
|