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2012 (6) TMI 407 - AT - Income TaxDenial of claim of exemption u/s. 80P(2)(a)(i) - Cooperative Society - the amendment to section 80P w.e.f. 01-04-2007, excludes benefit u/s. 80P to co-operative banks other than the defined categories – assessee claimed to be a primary co-operative agricultural and rural development bank – Held that:- Nothing in its object clause to suggest that its primary object is providing financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities (including marketing of crops) - the only object which enables it to provide financial accommodation is its object clause 2(a) only specifing the assets on the security of which the assessee-society may provide finance to its members - its area of operation admittedly extends beyond one Taluk - the assessee's claim of being a primary cooperative agricultural and rural development bank, which though would require independent examination and finding/s, is strongly indicative of the nature of its lending activities, which has a direct bearing on the question of it being a PACS (or not) - restore the matter for the purpose of necessary verification and issue of definite findings of fact/s, back to the file of the first appellate authority - no basis to consider the assessee as being a primary cooperative agricultural and rural development bank as defined in section 80P, so as to be entitled for tax benefit thereunder on its income as one such – in favour of assessee for statistical purpose.
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