INCOME TAX ACT, 1961

Section 80P

Deduction under section 80P - Co-operative Society - Providing credit facilities to its members by collecting funds from its members - Remand of matter

Assessee's main object was of providing credit facilities to its members by collecting funds from its members, marketing agricultural produce and agricultural implements, sale of fertilizers/pesticides, etc. and purchase and sale of domestic requisites and grocery, etc. It claimed deduction under section 80P. However, AO denied the deduction claimed by assessee. Held: Since Supreme Court had settled many issues in the decision rendered by it in the case of the Mavilayi Service Cooperative Bank Ltd. & Ors. v. CIT (2021) 123 taxmann.com 161 (SC) : 2021 TaxPub(DT) 273 (SC) and facts prevailing in the instant case need to be examined afresh in the light of the principles enunciated by Supreme Court in the above said case, the issue of deduction under section 80P(2)(a)(i) required fresh examination at the end of AO. Accordingly, matter was remanded back to AO for examining it afresh.

Followed:Mavilayi Service Cooperative Bank Ltd. & Ors. v. CIT (2021) 123 Taxmann.com 161 (SC) : 2021 TaxPub(DT) 273 (SC), Citizen Co-Operative Society Limited, Through Its Managing Director, Hyderabad v. Asstt. CIT (2017) 397 ITR 1 (SC) : 2017 TaxPub(DT) 2053 (SC), Totgars Cooperative Sale Society Limited v. ITO [Civil Appeal No. 1622 of 2010] : 2010 TaxPub(DT) 1466 (SC) and Pr. CIT, ITO v. The Totagars Co-Operative Sale Society [ITA No. 100066 of 2016] : 2017 TaxPub(DT) 1748 (Karn-HC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2017-18

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