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2015 (9) TMI 1734 - HC - Income TaxDeduction u/s 80P(2) (a) (i) - whether the assessee - Society is to be treated as a ‘primary co-operative bank’? - Whether the benefit of deduction u/s 80P (2) (a) (i) could be denied to the assessee on the footing that Though the appellant was said to be a Co-operative Society, it was in fact a co-operative bank, within the meaning as assigned to such bank under Part V of the BR Act? - whether Tribunal was correct in holding that the provision of sub-section (4) of Section 80P are applicable only to co- operative Banks and not to credit Co-operative Societies, which are engaged in business of banking, including providing credit facilities to their members? - HELD THAT:- We are in respectful agreement with the general view taken as to the interpretation of the relevant provisions of law, by the co-ordinate bench of this court, in the above and several other judgments adopting the same view. However, it is to be noticed that there is a seriously disputed question of fact which the Authorities under the IT Act have taken upon themselves to interpret in the face of the BR Act prescribing that in the event of a dispute as to the primary object or principal business of any co-operative society referred to in clauses (cciv), (ccv) and (ccvi) of Section 56 of the BR Act, a determination thereof by the Reserve Bank shall be final, would require the dispute to be resolved by the Reserve Bank of India, before the authorities could term the assessee as a co-operative bank, for purposes of Section 80 P of the IT Act. Any opinion expressed therefore is tentative and is not final. The view expressed by this court, however, as to the assessee being a co-operative society and not a co-operative bank in terms of Section 80P (4) shall hold the field and shall bind the authorities unless held otherwise by the Reserve Bank of India. See M/S. BANGALORE COMMERCIAL TRANSPORT CREDIT CO-OPERATIVE SOCIETY LIMITED [2014 (6) TMI 913 - KARNATAKA HIGH COURT]- Decided in favour of assessee.
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