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2023 (9) TMI 1410 - ITAT JODHPURDeduction u/s 80P(2)(d) - interest received from another cooperative society engaged in banking activities - whether the assessee being co-operative society be denied benefit of section 80P(2)(d) of the Act on interest received from another cooperative society engaged in banking activities? - HELD THAT:- CIT(A) has rightly passed the order as held Circular of CBDT cannot override the provisions of the Act of Parliament. Even the careful reading of the Circular No. 6 of CBDT make it clear that exemption is withdrawn with respect to Regional Rural Banks are not eligible for deduction under section 80P of the Income-tax Act, 1961 from the assessment year 2007-08 onwards, and not the co-operative societies. The assessee before us is the cooperative society and not the Regional Rural Bank. Therefore, considering the provisions of section 22 of Regional Rural Bank Act, wherein the status of the banks established are of the co-operative society the assessee is entitled for the exemption on the interest earned on the deposits. Decided in favour of assesee.
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