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2020 (5) TMI 15 - AT - Income TaxDeduction u/s 80P(2) - Assessee is a Co-operative Milk Producers society, registered under, The Karnataka Souharda Sahakari Act, 1997 and provides credit facilities to its members - Assessee claimed deduction u/s 80P on the interest received from Co-operative Bank on fixed deposit for the years under consideration which was disallowed by Ld. AO observing that section 80 P (2) (d) does not contain the word “bank” - HELD THAT:- As facts in present case are not readily available on record and there is no finding of authorities below on this factual aspect regarding the source of funds deposited on bank on which interest income was earned, the issue should go back to the file of CIT(A) for fresh decision. The Bench also proposed that regarding the applicability of Hon’ble Apex Court rendered in the case of The Citizen Co – Operative Society Ltd., vs. ACIT [2017 (8) TMI 536 - SUPREME COURT] also, the Ld. CIT(A) should pass speaking and reasoned order after comparing facts of present case with that of The Citizen Co – Operative Society Ltd., vs. ACIT (supra) under co – operative society Act, applicable in State of Karnataka. Set aside order of CIT(A) and restore the matter back to his file for fresh decision in light of above discussion, by way of a speaking and reasoned order after providing adequate opportunity of being heard to both sides. He is also directed to examine the facts of present case in the light of these two judgments of Tumkur Merchants Souharda Credit Co – Operative Ltd., vs. ITO [2015 (2) TMI 995 - KARNATAKA HIGH COURT] and PCIT and Another vs. Totagars Co – Operative Sale Society [2017 (7) TMI 1049 - KARNATAKA HIGH and pass necessary order - Appeal filed by the assessee is allowed for statistical purpose.
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