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The Tax Publishers2021 TaxPub(DT) 3798 (Bang-Trib) INCOME TAX ACT, 1961
Section 80P(2)(a)(i)
The Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (2021) 431 ITR 1 (SC) : 2021 TaxPub(DT) 0273 (SC), concluded that when the assessee is registered as a Co-operative Society under the respective State Acts, the interest income received by it for providing credit facilities to its members is entitled to deduction under section 80P(2)(a)(i). In view of the same, the matter was remanded to the AO with a direction to examine the deduction under section 80P(2)(a)(i) in the light of the dictum laid down in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (Supra)
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Co-operative society - Deduction under section 80P(2)(a)(i) - Allowability - Interest income received by assessee-society
Assessee-primary agricultural credit society claimed deduction under section 80P(2)(a)(i). Revenue was of the view that the interest income received by the assessee was not eligible for deduction under section 80P(2)(a)(i), as the same was not related to any banking activity.Held: The Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (2021) 431 ITR 1 (SC) : 2021 TaxPub(DT) 273 (SC), concluded that when the assessee is registered as a Co-operative Society under the respective State Acts, the interest income received by it for providing credit facilities to its members is entitled to deduction under section 80P(2)(a)(i). In view of the same, the matter was remanded to the AO with a direction to examine the deduction under section 80P(2)(a)(i) in the light of the dictum laid down in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (Supra)
Followed:Mavilayi Service Co-operative Bank Ltd. v. CIT (2021) 431 ITR 1 (SC) : 2021 TaxPub(DT) 273 (SC).
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2015-2016
IN THE ITAT, BANGALORE BENCH
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