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The Tax PublishersITA Nos. 317 to 322/Coch/2020 & S.P Nos. 158 to 163/Coch/2020
2021 TaxPub(DT) 1054 (Coch-Trib)INCOME TAX ACT, 1961
Section 80P(2)
Supreme Court had set aside the decision of High Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (2019) 414 ITR 67 (Ker) : 2019 TaxPub(DT) 4909 (Ker-HC) and had also further explained decision in the case of Citizen Co-operative Society Limited v. Asstt. CIT 2017 TaxPub(DT) 2053 (SC) in so far as the deduction that was given without any reference to any restriction or limitation cannot be restricted or limited by implication, therefore, AO was directed to grant the assessee the benefit of deduction under section 80P as claimed.
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Deduction under section 80P(2) - Assessee, a Primary Agricultural Credit Co-operative Society - Deduction that was given without any reference to any restriction or limitation cannot be restricted or limited by implication -
Assessee had claimed deduction under section 80P. The same came to be denied by AO on the ground that the assessee had not fulfilled the primary object of a Primary Agricultural Credit Society in so far as it was not providing financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities. CIT(A), following the decision of High Court in case of Mavilayi Service Co-operative Bank Ltd.(2019) 414 ITR 67 (Ker) : 2019 TaxPub(DT) 4909 (Ker-HC), upheld the denial of deduction under Section 80P. Held: A perusal of decision of Supreme Court in case of Mavilayi Service Cooperative Bank Ltd. & Ors. v. CIT & Anr. [Civil Appeal Nos. 7343 to 7350 of 2019, dated 12-1-2021] : 2021 TaxPub(DT) 273 (SC) clearly showed that Supreme Court had set aside the decision of High Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (2019) 414 ITR 67 (Ker) : 2019 TaxPub(DT) 4909 (Ker-HC). Supreme Court had also further explained the decision in case of Citizen Co-operative Society Ltd. v. Asstt. CIT 2017 TaxPub(DT) 2053 (SC) in so far as the deduction that was given without any reference to any restriction or limitation cannot be restricted or limited by implication. In circumstances, AO was directed to grant the assessee the benefit of deduction under section 80P as claimed.
Followed:Mavilayi Service Cooperative Bank Ltd. & Ors. v. CIT & Anr. Civil Appeal Nos. 7343 to 7350 of 2019 dated 12-1-2021 : 2021 TaxPub(DT) 0273 (SC), Citizen Co-operative Society Limited v. Asstt. CIT 2017 TaxPub(DT) 2053 (SC), UP Co-operative Cane Union Federation Ltd. v. CIT 1999 TaxPub(DT) 90 (SC) and Mavilayi Service Co-Operative Bank Ltd. v. CIT (2019) 414 ITR 67 (Ker) : 2019 TaxPub(DT) 4909 (Ker-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, COCHIN BENCH
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