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2017 (10) TMI 1524 - AT - Income TaxDeduction u/s 80P - whether the assessee is eligible for deduction under section 80 P of the income tax act or not for assessment year 2007 – 08? - DR submitted that it has been clarified wide circular dated 25/08/2006, wherein it has been stated that regional rural banks would not be eligible for deduction under section 80 P of the income tax act from assessment year 2007 – 08 - HELD THAT:- As decided in Circular No. 6/2010, dated 20/09/2010 despite the amended provisions, some Regional Rural Banks continue to claim deduction under section 80P on the ground that they are cooperative societies covered by section 80P(1) read with Boards Circular No. 319 dated 11-1-1982. It is, therefore, reiterated that Regional Rural Banks are not eligible for deduction under section 80P of the Income-tax Act, 1961 from the assessment year 2007-08 onwards. Further more, the Circular No. 319 dated 11-1-1982 deeming any Regional Rural Bank to be cooperative society stands withdrawn for application with effect from assessment year 2007-08. The field officers may take note of this position and take remedial action, if required. As the Ld. CIT appeal has decided this issue without considering the above circular, we set aside the whole issue back to the file of the Ld. CIT appeal to verify whether the assessee is eligible for deduction under section 80 P of the income tax act or not. Appeal of the revenue is allowed for statistical purposes accordingly.
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