Section 80P and Cooperative Societies: Unraveling the Tribunal's Interpretation

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..... under the Income Tax Act, 1961 , specifically sections 80P(1) , 80P(2)(a)(i) , and 80P(2)(d) . This case is pivotal in understanding the scope of tax benefits available to cooperative societies, particularly in relation to their income from banking and investment activities. Overview of the Case: This case involved a primary agricultural credit society (PACS), registered under a state C .....

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..... banking business', making it eligible for the sought deductions. Tribunal's Analysis and Interpretation: Cooperative Society vs Cooperative Bank : The Tribunal examined the definition of a cooperative bank under the Banking Regulation Act, 1949. Although the society was not a cooperative bank, it engaged in activities akin to banking. The Tribunal referenced the state Cooper .....

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..... atment of Dividend Income : For dividend income from unlisted securities, the Tribunal concluded that it did not form part of the society's core banking business and should be treated under section 80P(2)(c). Conclusion and Implications: The Tribunal's decision in this case underscores the intricate distinctions in applying section 80P of the Income Tax Act to cooperative .....

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