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2023 (3) TMI 819 - AT - Income TaxDisallowance u/s 80P - interest received from Cooperative Banks - Whether Urban Cooperative Bank come under the ambit of Co-operative Societies? - HELD THAT:- The decision of the Hon’ble Apex Court in the case of Mavilayi Service Co-operative Bank Limited [2021 (1) TMI 488 - SUPREME COURT] has taken a view that Section 80P being a benevolent provision enacted by the Parliament to encourage and promote the credit of the co-operative sector in general must be read liberally and reasonably. Various decisions especially that of Apex Court in Totgar’s Co-operative Sales Society Limited [2010 (2) TMI 3 - SUPREME COURT] and SBI [2016 (7) TMI 516 - GUJARAT HIGH COURT] will not be applicable in the present case to the contest as the assessee has derived interest from member Co-operative Society Bank i.e. Mehsana Urban Co-operative Bank. This fact was not disputed by the Revenue. Urban Cooperative Bank which is coming under the ambit of Co-operative Societies as they are registered under the Societies Act and are into benefit of all the members of the Society. AO as well as the CIT(A) was not right in disallowing the deduction claimed u/s 80P(2)(d) of the Act. - Decided against revenue.
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