Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 662 - AT - Income TaxDeduction u/s. 80P(2)(d) - AO disallowed the deduction u/s. 80P(2d) by holding that the assessee was a Cooperative bank as per section 80P(4) - assessee’s appeal learned CIT(A) deleted the disallowance holding that the was not a cooperative bank - HELD THAT:- We find that this issue is squarely covered in favour of the assessee by the decision of Hon'ble Supreme Court in the case of Citizen Cooperative Society Ltd. [2017 (8) TMI 536 - SUPREME COURT] and The Mavilayi Service Cooperative Bank Ltd. & Ors. Vs. CIT, Calicut & Ors. [2021 (1) TMI 488 - SUPREME COURT]. We find that the Assessing Officer has completely erred in treating the assessee as cooperative bank and invoking the provisions of section 80P(4). Honourable Supreme Court in the case of Citizen Cooperative Society Ltd. has settled the law that for being considered as a cooperative bank licence from RBI in this regard is a sine qua non. In absence of the RBI licence as such the assessee cannot be treated as cooperative bank. Hence disallowing the deduction by referring to the provisions of section 80P(4) is completely unsustainable. Moreover section 80P(2)(d) provides exemption to interest earned on fixed deposit in cooperative societies. It is nobody's case that cooperative bank are not cooperative societies. - Decided in favour of assessee.
|