| |
| The Tax Publishers2019 TaxPub(DT) 5569 (Bang-Trib) INCOME TAX ACT, 1961
Section 80P
Since amount which was invested in banks to earn interest was not an amount due to any members, therefore, interest on deposits with Sub Treasury was entitled to the benefit of deduction under section 80P(2).
|
Deduction under section 80P - Interest earned on deposits with Sub-Treasury - Allowability -
Assessee, a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969, provided credit facilities to its members and claimed deduction under section 80P. AO denied the deduction claimed under section 80P on the ground that assessee was doing the business of banking and in view of insertion of sub-section (4) to section 80P, assessee was not entitled to benefit of section 80P. Held: High Court in case of Pr. CIT v.The Totagars Co-operative Sale Society (2017) 83 taxmann.com 140 (Karn) : 2017 TaxPub(DT) 1748 (Karn-HC) held that amount which was invested in banks to earn interest was not an amount due to any members. Thus, interest on deposits with sub-treasury was entitled to the benefit of deduction under section 80P(2).
Followed:The Citizen Co-operative Society Limited v. Asstt. CIT (2017) 397 ITR 1 (SC) : 2017 TaxPub(DT) 2053 (SC), Pr. CIT v.The Totagars Co-operative Sale Society (2017) 83 taxmann.com 140 (Karn) : 2017 TaxPub(DT) 1748 (Karn-HC) CIT v. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot (2014) 369 ITR 86 (Kar) : 2015 TaxPub(DT) 0429 (Karn-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT BANGALORE BENCH
 SUBSCRIBE FOR FULL CONTENT
|